top of page
Glossary Term
Fair Market Value (FMV)
Definition
Fair Market Value (FMV) refers to the price that a medical device, service, or product would command in an open and competitive market between willing, knowledgeable buyers and sellers. In the MedTech industry, FMV is often used to determine reasonable compensation for goods or services provided to or by healthcare professionals (HCPs), aligning with regulatory requirements to prevent fraud and abuse.
Relevance to the MedTech Industry
FMV ensures that transactions, particularly those involving healthcare providers, are transparent and compliant with laws such as the Anti-Kickback Statute and the Stark Law. It prevents unethical practices, such as overpayment or underpayment, which could influence medical decision-making or create competitive imbalances.
Additional Information & Related Terms
bottom of page