MERGERS & ACQUISITIONS (M&A) / DUE DILIGENCE
Reducing acquisition risk while increasing negotiation leverage.
We don't just run the numbers. KHC looks behind them, examining patterns, trends, and volumes across financial performance, revenue cycle, compliance, and operations to identify what the target entity's results aren't showing you.
Healthcare M&A due diligence is uniquely complex.
Mergers and Acquisitions in the healthcare industry have become increasingly commonplace as healthcare reform continues to support consolidation and integration among hospitals and private practices. Due diligence reviews help organizations assess the potential liabilities in M&A transactions.
Due diligence in the healthcare industry is more complicated than other industries because it must include financial, legal, and regulatory reviews. The acquiring entity may have little knowledge regarding the services provided by the target organization or its obligations and liabilities. All aspects of the identified target's business should be evaluated and explained to verify compliance with regulatory and legal obligations.
Key Focus Areas
KHC's M&A due diligence reviews include focused operational investigations such as coding, medical record documentation, payer contracts and reimbursement, claims processing systems and controls, and provider arrangements with referral sources, as well as identifying risks and gaps in the finance and revenue cycle processes of the target entity.
Due diligence findings can change a transaction entirely.
Uncovering compliance exposures, revenue cycle gaps, or undisclosed liabilities before closing gives the acquiring entity tools to renegotiate terms, require corrective action as a condition of closing, or walk away from a transaction that doesn't meet its risk threshold.
We don't just consult on healthcare. We've worked inside it.
KHC’s due diligence reviews give acquiring organizations a clear picture of the target entity’s financial performance, compliance, and operational risks to support informed decision-making and strengthen negotiations when needed.
Our team includes:
Hospital Executives • Physicians • Registered Nurses • Compliance Officers • Certified Coders • CPAs Billers & Reimbursement Specialists • Pharmacy & Laboratory Technicians
Due Diligence and Integration Planning
DUE DILIGENCE
Financial and Operational Reviews
- Identification of the target's key characteristics and risk profile
- Historical financial performance assessment
- Revenue cycle policy, procedure, and process assessment
- Documentation and coding review
- Payer contract and fee schedule assessment
- Compliance program review
- Provider arrangements
- Claims processing systems and controls review
- Clinical care risk assessment
INTEGRATION PLANNING
Post-Acquisition Support
- Governance and management structure
- Human resource integration analysis and planning
- Office location assessment
- Ancillary service impact analysis
- Communications planning
- Compliance program integration
Evaluating a healthcare acquisition or merger?
KHC's due diligence reviews are packaged and presented to assist the acquiring entity in making informed decisions regarding the compliance and financial risks of the target organization and to anticipate issues that may need to be resolved after acquisition.
