With regard to the determination of the MSA royalty FMV, it is customary to implement a market approach and a cost estimate. A market approach analyzes royalties normally paid by similar companies for similar services in the market. This approach is often a specific reference to the VMF when the rate of services and the type of unit are comparable to the market data points. As a result, market-based analyses may be preferred for established market segments, such as ASAs and imaging centres, provided that MSA services are typical and comparable fees are available. With the growth of MMAs in other health sectors, such as wound care and behavioural health, the market approach may be less relevant. This may be due to different and non-comparable pricing structures, lack of market data and/or unique services such as development, marketing or other consulting services. Therefore, for an agreement to be ONE CR, it must be important for the health care business`s business and for its sound business objective, without the recommendations being taken into account. In determining whether an MSA is a CR, health care companies should consider the operational requirements of the company, such as the size of the facility and the needs of patients, as well as the reason for the MSA, and avoid compensating them for the services already provided in the facility. In addition, health care companies should take into account the experience and expertise of the MSO that provides the services, with the lowest costs being the lowest for comparable services, and ensure that there is a written agreement between the parties on the terms of services. MS may include national, regional, health management or physician-managed management services and increasingly offer specialized services through AMM. These services vary and may include turnkey management services, revenue cycle management services and other pay-per-view services. The goal is often to allow the healthcare company to focus on clinical functions in order to improve patient outcomes. MSOs offer more efficient management services and economies of scale resulting from the maintenance of several facilities such as outpatient surgery centres (ASCs), imaging centres, medical practices and hospitals.

Health management and other administrative agreements have multiplied, as healthcare companies continue to find innovative ways of coordinating with doctors and identifying companies that have management expertise in the many health sectors. It is important to understand that the services provided under an “administrative agreement” are very different in the market and that they must be thoroughly analyzed before setting a reasonable fee for these services. MS allows clinical staff to focus on patients, while providing sectoral expertise in reimbursement, quality reporting and supervision. Often, MSOs have a referral relationship with the service provider, whether through physician ownership, or MSO is a business that relates to the supply business. Therefore, it is important that the costs mentioned in the management services agreements (MSAs) between MSOs and healthcare companies are fair value (FMV) and economically reasonable (CR). Fixed tariff structures may be preferred for health care systems that receive reimbursement from the state and doctors (or their own MSOs), as they do not vary according to the volume of the institution`s recommendations. Single fixed charges may be preferable for services provided within a specified time frame, such as development services. B services related to the construction and commissioning of facilities.

However, in the past, a percentage of net sales has been the most common rate structure for typical MGs.