What are the key points of due diligence in a surgical centre

by a searcher from Dartmouth College - Tuck School of Business at Dartmouth

2 years ago

Taking risks and aiming beyond the present have always excited me. But it takes much more than faith in an idea to crystallise monumental goals. It takes a group of incredible people who not only believe in the idea but also have the talent to execute it. For this reason, I am currently assembling a world-class board of directors comprised of individuals who are clear industry leaders. Leaders who possess extensive industry experience/knowledge and who are highly proficient in M&A and the operation of surgery centres and other sector-specific businesses.

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searcher from IE Business School

In addition to the above, I'd say (in the US context) HIPAA compliant systems (whether outsourced or managed in-house), correct waste management protocol for sharps/bio-waste (everything from having contracts with disposal companies to practices at the surgery), strict due diligence on qualifications of the surgeons, making sure structures are in place so that the surgeons won't just leave and start their own clinic, etc.

Really important and reiterating what people said above though is making sure the surgery and payors have a good relationship. See how well managed working capital and revenue recognition are at the company.

2 years ago | like reply | 0 likes

professional from University of South Florida

All of the above are great points. I'd also add revenue recognition/reconciliation to billings and collections data. Given the lags in dealing with insurance, every facility tends to handle rev-rec a little differently and some heavy estimates can be involved at times.

2 years ago | like reply | 0 likes

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