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Fair Market Value and Commercial Reasonableness in Healthcare Transactions

FMV and Commercial Reasonableness in Healthcare Transactions: A Compliance Imperative

Serj Mooradian and Seyed Mirabedini, Mooradian PLLC / April 22, 2025

This post is part of our ongoing Healthcare Transactions Series, where we explore legal, operational, and strategic issues that matter most to providers, investors, and entrepreneurs navigating the business of healthcare. In this installment, we focus on two foundational—but often misunderstood—regulatory concepts: Fair Market Value (FMV) and Commercial Reasonableness (CR). Whether you’re acquiring a practice, structuring a management agreement, or evaluating physician compensation models, understanding FMV and CR is essential to ensuring your deal is not just financially sound—but also legally defensible.

What FMV and CR Really Mean

Fair Market Value

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