Investments that seem good in theory, such as remote monitoring technology or urgent care centers, can sometimes look bad in financial models. But the problem might not be the investment—it could be the model. Traditional pro formas only account for activity-based revenue.
To account for an investment’s full financial benefits under value-based reimbursement, analysts must incorporate changes to activity-based revenue, and include additional sources of returns.
Read this primer for an introduction on how to think of new investment opportunities moving forward.
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Your FFS pro forma is obsolete—here's your new one