Fair Market Value in Healthcare Transactions: Valuation Across Structure, Compensation, and Transaction Components (VMG Health)

Chance Sherer, Managing Director | VMG Health

Chance Sherer, CVA, is a Managing Director in Valuation & Transaction Advisory at VMG Health’s Denver office, where he provides specialized financial, valuation, and transaction consulting services to a broad array of healthcare clients. His practice focuses on delivering robust valuation insight across strategic transactions, physician enterprise matters, and ancillary service lines, supporting informed decision-making in complex healthcare environments.

• Education & Credentials

Chance holds a Bachelor of Business Administration in Finance from the Cox School of Business at Southern Methodist University. He is a Certified Valuation Analyst (CVA) and an active member of the National Association of Certified Valuation Analysts (NACVA), reflecting his commitment to excellence in valuation standards and professional development.

• Recognition & Leadership

As a subject matter expert within the American Bar Association Health Law Section’s Business and Transactions Interest Group, Chance contributes to thought leadership at the intersection of valuation and legal practice. His work advising health systems and sophisticated healthcare enterprises underscores his reputation as a trusted advisor in valuation and transaction strategy.

• Professional Involvement

Chance is engaged with industry peers through his NACVA membership and ABA involvement, which positions him at the forefront of evolving valuation practices and regulatory expectations. His contributions include speaking and thought leadership on valuation issues impacting healthcare transactions and compliance.

• Experience

With extensive experience in healthcare valuation, Chance has served clients across ambulatory surgery centers, surgical hospitals, diagnostic imaging, oncology centers, dialysis facilities, physician groups, and other ancillary service businesses. His advisory work spans transaction planning, financial reporting valuation, feasibility and recapitalization analyses, joint ventures, restructuring initiatives, and de novo business development. This diverse portfolio reflects deep sector expertise and a practical understanding of how valuation informs strategic execution and compliance in healthcare.

Bartt B. Warner, Managing Director | VMG Health

Bartt B. Warner, CVA, is a Managing Director in the Compensation Valuation practice at VMG Health in Nashville, where he provides specialized valuation and advisory services for complex healthcare compensation arrangements. His work supports health systems, academic medical centers, and other healthcare organizations in structuring defensible compensation frameworks across clinical and administrative service arrangements.

• Education & Credentials

Mr. Warner earned his Bachelor of Science degree from the University of Tennessee, Knoxville, and holds the Certified Valuation Analyst (CVA) designation from the National Association of Certified Valuators and Analysts (NACVA), underscoring his expertise in healthcare valuation methodologies.

• Recognition & Leadership

He currently serves as Chair of the American Health Law Association’s Fair Market Value Affinity Group, reflecting his leadership within the intersection of valuation and healthcare law and his role in shaping best practices for FMV analysis across the industry.

• Professional Involvement

Mr. Warner is actively engaged in the healthcare valuation community as an author and presenter for leading organizations, including the NACVA, Becker’s Hospital Review, Healthcare Financial Management Association, and the American Health Law Association, contributing thought leadership on valuation, compliance, and compensation design.

• Experience

With a career rooted in both business valuation and compensation advisory, Mr. Warner has deep experience of valuing clinical service arrangements, on-call coverage, medical director services, graduate medical education, and management services. He began his tenure at VMG Health in the Business Valuation Division, providing valuation services for hospitals, ambulatory surgery centers, imaging centers, and multi-specialty practices, and has since focused on compensation arrangement valuation and consulting.

I. Understanding the Scope of FMV in Healthcare Transactions | 1:00pm – 1:15pm

This program provides a comprehensive examination of how fair market value considerations permeate healthcare mergers, acquisitions, joint ventures, physician practice acquisitions, and management arrangements. Faculty will address how FMV applies to overall transaction pricing, equity splits, physician compensation models, medical director agreements, and ancillary service investments. The discussion will clarify the distinction between FMV and commercial reasonableness, outline how regulators analyze valuation methodologies, and explain how FMV intersects with compliance obligations under federal fraud and abuse laws. Attendees will gain a structured framework for spotting where valuation risk arises during deal planning and negotiation.

II. Identifying Red Flags Across FMV Components | 1:15pm – 1:30pm

This CLE consolidates key valuation risk areas across transaction structures and compensation arrangements. Topics include aggressive benchmarking, unsupported productivity incentives, purchase price allocations that embed referral value, stacked management fees, private equity return layering, and documentation gaps that undermine defensibility. Faculty will discuss how regulators evaluate valuation assumptions, internal communications, and governance processes during investigations. Practical guidance will focus on how attorneys can stress-test valuation inputs, ask targeted questions of financial advisors, and ensure transaction files reflect sound, supportable analysis.

III. Review an Example Transaction | 1:30pm – 2:00pm

The program concludes with a detailed walkthrough of a representative healthcare transaction that incorporates practice acquisition, compensation restructuring, and management layering. Faculty will apply FMV principles in real time, identifying red flags, analyzing valuation support, and proposing structural adjustments to mitigate risk. Both enforcement and defense perspectives will be incorporated to demonstrate how regulators and litigators might evaluate the same fact pattern. This applied exercise is designed to help attorneys translate valuation theory into concrete legal strategy they can immediately use in structuring and reviewing healthcare deals.