FMV (Fair Market Value)
Fair Market Value
Compensation, rent, or payment terms that reflect what would be paid in an arm's-length transaction.
1 min read · Last reviewed May 23, 2026
At a glance
- Category
- Compliance Program
- Acronym for
- Fair Market Value
- Primary sources
- 2
- Workspace handoff
- compliance binder →
Where this comes up
Compliance committees and practice managers operate at this level — written policy, workforce training, sanction policy, monitoring and auditing cadence, response and corrective action. The seven elements of an effective compliance program (OIG) are the scaffolding; this term lives somewhere on that scaffold.
Full definition
What it is in practice
Both the AKS and Stark Law often turn on whether arrangements are at FMV. Independent valuations (e.g., MGMA-benchmarked compensation, third-party space appraisals) are the standard documentation.
How it shows up in your practice
Refresh the FMV documentation annually. Stale benchmarks weaken the defense if the arrangement is later questioned.
Sources
- HHS-OIG — AKS Safe Harborshttps://oig.hhs.gov/compliance/safe-harbor-regulations/index.asp
- CMS — Stark Lawhttps://www.cms.gov/medicare/regulations-guidance/physician-self-referral
Store FMV documentation in the Compliance Binder
Open compliance binder →Related terms
- Compliance ProgramAnti-Kickback Statute (AKS)Federal criminal statute (42 USC 1320a-7b(b)) that prohibits offering, paying, soliciting, or receiving remuneration to induce or reward referrals for items or services payable by federal health programs.
- Compliance ProgramStark LawFederal statute (42 USC 1395nn) prohibiting physicians from referring Medicare/Medicaid patients for designated health services to entities with which the physician has a financial relationship, unless an exception applies.
- Compliance ProgramIn-Office Ancillary Services ExceptionStark Law exception (42 CFR 411.355(b)) permitting referrals for designated health services furnished in the referring physician's office.
D3rx is a healthcare-billing and compliance research aid maintained by D3rx Inc. Articles are drafted by an LLM (Anthropic Claude) against primary HHS, OCR, CMS, eCFR, NIST, and state-regulator publications, and reviewed for restraint and source fidelity by the D3rx team.
Reviewer status: a named credentialed reviewer (CHC, CHPC, or healthcare attorney) is being engaged. Until that engagement is finalized, this page does not claim credentialed review.
Related across the archive
- GlossaryAnti-Kickback Statute (AKS)Federal criminal statute (42 USC 1320a-7b(b)) that prohibits offering, paying, soliciting, or receiving remuneration to induce or reward referrals for items or services payable by federal health programs.
- GlossaryStark LawFederal statute (42 USC 1395nn) prohibiting physicians from referring Medicare/Medicaid patients for designated health services to entities with which the physician has a financial relationship, unless an exception applies.
- GlossaryIn-Office Ancillary Services ExceptionStark Law exception (42 CFR 411.355(b)) permitting referrals for designated health services furnished in the referring physician's office.
- GlossaryCivil Monetary PenaltiesAdministrative penalties HHS-OIG may impose on healthcare providers for various violations including HIPAA breaches, kickbacks, and billing for excluded individuals.
- RegulationAnti-Kickback Safe Harbors Overview (42 CFR 1001.952)Approximately 30 safe harbors define payment and business practices that, despite generating remuneration, do not result in AKS liability when all conditions are met.
- GlossaryDesignated Health Service (DHS)Categories of services subject to the physician self-referral prohibition under the Stark Law.
- BillingWhat to Do When a Payer Says You're UnderbillingGot a letter saying you're underbilling? Here's what it actually means, whether you should worry, and what action to take.
- ComplianceAmbulatory Surgery Center Compliance: CMS + State + Infection Control42 CFR Part 416 Conditions for Coverage, CMS State Operations Manual Appendix L, the ASC Infection Control Surveyor Worksheet, and where state ASC licensure tightens the standard.
This glossary entry is a research aid for billing and compliance staff. It does not provide legal, medical, or financial advice and does not replace counsel. References cited link to primary sources at HHS, OCR, CMS, eCFR, NIST, and the relevant payer or industry body.