Transaction Support and Due Diligence

Transaction Support and Due Diligence

Whether you are contemplating acquiring a hospital or merging with another hospital or health system, your organization needs a comprehensive, thorough understanding of that entity. Due diligence is best performed by those who are expert in healthcare strategic, financial and business analyses, and have day-to-day knowledge and experience with what is happening in healthcare now.

“The due-diligence period should be more than a search for deal barriers. The cooler emotional temperatures that prevail . . .present an opportunity to reaffirm why the deal is compelling and to establish clarity about the post-transaction future.”

Veralon Managing Director and CEO Dan Grauman

Veralon can support your organization through the many aspects of due diligence, and keep your transaction on track. We have performed meticulous financial analyses on thousands of projects in our more than 20 years in healthcare. When the due diligence process uncovers details of deal structure, reimbursement, compensation, valuation or transition that have not been fully vetted, we have the communication skills to surface these issues and the practical knowledge to address them without derailing the transaction.

Our due diligence assessments include evaluation of:

  • Strategic and competitive position
  • Financial results for the entity involved in the transaction, including benchmarking key metrics; income statement and balance sheet analysis; assessment of capital requirements; and preparation of detailed financial projections incorporating impact of changes in ownership, physician compensation levels, value-based payment programs, re-pricing analyses and what-if scenarios
  • Operations analysis, including current and projected patient care volumes, efficiency indicators, cost analysis, cost structures, service line profitability
  • Multi-campus service and facilities assessment
  • Information technology
  • Management and governance, including legal and organizational aspects, and evaluation of leadership team effectiveness
  • Regulatory status, including adequacy of compliance program and risk management program
  • Quality, including internal quality dashboards, infection rates, and medication errors, as well as quality performance under value-based payer arrangements
  • Medical staff and physician relations, including evaluation of the medical staff composition and admissions profile, and any physicians under disciplinary action
  • Physician enterprise performance, including productivity, quality indicators, billing and collections, compensation plans, and non-physician staffing
  • Professional service arrangements