IRS 96 CPE Text

July 24, 2015

This is an excerpt from the IRS education text for the Exempt Organization Division related the valuation of physician medical practices.

To download the rest of this text, click here: IRS 96 CPE Text


Q. VALUATION OF MEDICAL PRACTICES
by
Charles F. Kaiser and Amy Henchey

1. Introduction
This article updates an article in the 1995 CPE text, at pp. 162-81, on the
valuation of medical practices. Part 2 explains why exempt hospitals are acquiring
physician practices. Part 3 provides an introduction to methodologies for valuing
business enterprises such as physician practices. Part 4 explains the cost approach
to the valuation of a medical practice. In Part 5, the market approach is discussed.
Finally, Part 6 provides an in-depth discussion of the income approach to valuing
a medical practice. Part 6 also discusses an “allocation” method to business
enterprise valuations which combines elements of the other approaches and avoids
their major drawbacks.


To download the rest of this text, click here: IRS 96 CPE Text

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