I have two Rev code questions, we originate several medical & dental loans. Large bank- OCC regulated.

First scenario: Dr has worked at a hospital/medical facility for a few years and now qualifies to buy-in. Dr. doesn't have any GAR, since they are just now becoming owners, however, the GAR of the hospital was reported in the credit memo & projected GAR for the Dr was shown as well. Its not a start up, but its also not truly 'unknown'. What is the best way to report this?

Second scenario, Practice purchase: New Dr is buying the current business, typically I report these as a 1. Are there any cases in which we would use the previous owners GAR? If the new Dr is just buying to take it over and the previous Dr is slowly retiring, etc?

I appreciate the input.

I think in both cases, the revenue of the business being used is what you need to use. After all, you're assuming that the business will continue to stay the same, right?

I don't think so... but maybe I'm wrong on my thinking there also. I know if the buying Dr formed a new entity to purchase, we would def report this as a 1. If the Dr owns their own practice & buys another, we use the GAR from the existing practice only.

The medical practice buy-in has me the most concerned. It has 5-30mm in Rev annually, however since the Dr just bought in, is it fair to report them with that Rev.

Where is Dawnie when you need her!!? LOL!

*bump* Any other thoughts that others can provide?