What Is a Medical Practice Evaluation?
A medical practice evaluation is a process whereby the practice of any member of the different branches of medical profession is subjected to professional evaluation by an appraisal team. Some of these branches of medical profession include dental, veterinary, orthopedic and ear, nose and throat. Just about every aspect of medical practice can be included in a medical practice evaluation, and it may also be conducted for any number of reasons. Some of those reasons include buying a practice, selling a practice, divorce, financing, partner contracts, and disputes as well as malpractice litigation.
The conduction of a medical practice evaluation for the purpose of buying a practice is necessary when a medical practitioner is trying to buy the practice of another member in the profession. For instance, if a dentist decides to relocate to another state, he or she would have to lay the groundwork necessary to make the transition smooth. Such groundwork would necessarily include obtaining whatever license and certification is necessary to practice in the new state and also looking for where to establish the new practice. If the dentist decides to buy the practice of another dentist who may be retiring or moving, the practice of this dentist would have to be evaluated in order to determine its value. The appraisers would apply a lot of parameters in order to arrive at the value of such a practice, including location, reputation, size of the practice, annual turnover and other variables.
When medical professionals are embroiled in divorce cases, part of the process of the division of assets and the determination of spousal and child support would include a medical practice evaluation. The court may order the appraisal of the practice by a court-appointed appraiser if there is any reason to believe that the medical professional has undervalued the practice with the intention of paying less spousal or child support. A final decision will be made by the court regarding the exact amount the practitioner will have to pay, based on the outcome of the appraisal.
Another reason why a medical practice evaluation is necessary is to allow the medical practitioner to obtain some form of financing, which may be in the form of a loan or mortgage, or other forms of credit that will be applied to purchasing necessary medical equipment. Sometimes the government might disburse some form of incentive or tax credit to practices based on certain criteria that can be determined through medical practice evaluation. Malpractice lawsuits or other forms of litigation may also require a medical practice evaluation as a part of the process for determining the outcome of the dispute.
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