Mergers and Acquisitions and the Importance of the Due Diligence Process

Feb 03, 2014 at 05:41 pm by Staff


A wise man once said “Success always comes when preparation meets opportunity”. Merger and acquisition activity among U.S. healthcare organizations is on the rise — up 20 percent in 2013 over the prior five-year track. Driving the surge is a host of game-changing forces that threaten the sustainability of many small hospitals and healthcare systems. These organizations may lack the capital, infrastructure, talent or technology to thrive … or even survive … in the radically different healthcare environment that's taking shape.Making the appropriate commitment to the due diligence process will create much greater risk/reward ROI especially when the hospital/health system employs physicians. When the target organization has multiple verticals (hospital, physician practices, home health, etc.), the lack of attention to one particular component of the deal can create a real problems after the close. Invest in the due diligence process (especially on the physician practice front) to create a more synergistic arrangement. To learn more about the due diligence process, please contact Andrew McDonald 615-309-2474 or amcdonald@lbmc.com or visit www.lbmc.com.  Andrew McDonald, FACHE LBMC Partner, Healthcare ConsultingA partner of healthcare consulting for LBMC, McDonald has had a 28-year career as either full-time administrator or consultant to a broad range of healthcare organizations. He is experienced in providing due diligence, revenue cycle management, valuation, compliance, strategic planning, human resource management, financial analysis, IT assessment, practice development, and general practice management services to organizations preparing to meet the challenges presented by an ever-changing healthcare environment. 

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