Compensation Valuation

TSHC provides compensation valuation analyses for a variety of healthcare service arrangements, including:

  • Patient care or clinical services

  • Hospital and facility call coverage

  • Hospital-based department or service line coverage arrangements

  • Management services

  • Clinical and administrative leadership positions

Consistent with our business intelligence approach, TSHC does not apply the “survey says” paradigm in valuing physician services. Surveys do not generally include sufficient information to address the key economic drivers of value for these services. Rather, survey data provide benchmarking opportunities, and in some instances, can be used as inputs for certain valuation methods. In our valuation worldview, percentiles of data do not singularly form the universal boundaries of fair market value, whether as compensation floors or ceilings. 

TSHC bases the value of service arrangements on the economics of the subject transaction. This analytical framework considers the facts and circumstances of the arrangement in the local market context. This business intelligence approach allows us to analyze value from a buyer neutral or buyer specific perspective, depending on what definition of value is needed for the client’s intended use of the valuation.

We also focus on estimating the value of the services based on critical analysis of the arrangement terms. Fundamental to the practice of compensation valuation is the principle of matching value with the services provided. This matching requires study and assessment of the key terms in a service arrangement.