In the current world, fair market value can be anything that someone is willing to pay for the company whether it has any revenues or not but in healthcare industry, it’s illegal against the law to pay anything other than fair market value.
The roots of the legal president in healthcare industry does not allow to buy any physician’s conscience, ethics, decision making by paying him huge amount of money that he can’t deny.
Fair market value is the amount that a knowledgeable, willing, unpressured buyer would pay to a knowledgeable, willing unpressured seller in the marketplace.
The healthcare industries use two leading databases as they collect and aggregate the data on all of the investigators who have agreed upon previous contract and budget negotiation in term of the value of services rendered.
The fair market value data can also be collected from the existing healthcare data and Medicare data on what services the physicians are paid in standard of healthcare.
The errors for fair market values in clinical healthcare industry are around the aggregation of data I contract and budgeting. Here are the big things contributing to errors as:
· 51% of the physicians fail in their first clinical trials after getting involved in research because they cannot find it profitable, unable to realize the work involve and regulatory burden and inability to choose correct trial. These mistakes defines that they were unknowledgeable that does not obey the definition of fair market value.
· Unknowledgeable people doing unworthy research have their data in the database with the people who are completely knowledgeable of their worth and responsibilities and weighing them both at the same scale holding down the knowledgeable people.
· All the performing and underperforming sites are treated equally in contract and budget metrics in databases.
These are the errors in healthcare industry in term of the fair market value.
The fair market value determination that drives from healthcare data and medicare data in the delivery of standard of care healthcare is flawed because there is a dramatic difference in the complexity of the work that a physician perform in the standard of care healthcare versus research.
There are sites that are trying to invest in their infrastructure in order to perform exceptionally get their budget held down due to the unknowledgeable people because of the fair market value in healthcare world.