S.C. Court of Appeals gives guidance in valuation of physician practices

In Keane v. Lowcountry Pediatrics, the Court of Appeals reversed a trial court order calculating the share value of the practice by including good will. According to the Court of Appeals, South Carolina courts should not, in valuing a professional association, include the goodwill of the professional because of its speculative nature and the fact that goodwill 'attaches solely to the person of the professional man or woman as a result of confidence in his or her skill and ability and does not possess value or constitute an asset separate and apart from the professional's person.' Absent a contractual provision, good will should not be included in a share price.