What is a Fractional COO?
Business dynamics are evolving. Today, it’s not uncommon to find companies veering away from the traditional full-time executive roles. And at the heart of this evolution is the concept of the Fractional COO. The Evolution of the Fractional COO The Fractional COO, often referred to as a part-time COO, is a strategic move where businesses […]
Tax Considerations In Healthcare M&A
Tax considerations in healthcare M&A are crucial for ensuring a thorough understanding of the potential tax implications of a transaction. As healthcare facilities are subject to both federal and state taxes, the current tax climate can make taxation uncertain. This potentially can have both positive and negative effects on M&A transactions in the healthcare space. […]
Healthcare Mergers and Acquisitions Explained
In the healthcare industry, mergers and acquisitions (M&A) is a complex and multifaceted process that includes not only financial and strategic considerations but also compliance with governing authorities. In this article, we will examine the numerous permissions required from these governing authorities in order to execute a healthcare M&A successfully. We will examine how the […]
Navigating the Regulatory Landscape in Healthcare Mergers and Acquisitions
Healthcare mergers and acquisitions transactions are subject to a range of federal and state regulations designed to prevent providers from gaining an unfair advantage over the government or patients. These regulations include the False Claims Act, Anti-Kickback Statute, Physicians Self-Referral Law, Exclusion Authorities, and Civil Monetary Penalties Law. Violations of these regulations can result in […]
Healthcare Compliance in Mergers and Acquisitions (M&A)
Mergers and acquisitions (M&A) are becoming more prevalent in the healthcare industry as organizations seek to expand their reach and gain a market advantage. To facilitate the integration of the two organizations and establish long-term synergy, we must make a number of adjustments in conjunction with these transactions. The area of licensing in healthcare M&A […]
Employment Considerations In Healthcare M&A
When it comes to healthcare M&A, employment due diligence is crucial to ensure compliance with laws and regulations, as well as to prevent costly penalties. One important aspect of employment due diligence is understanding and complying with the Workers Adjustment and Retraining Notification (WARN) Act. This act requires employers to give advance notice to employees […]
Valuation Strategies for Healthcare M&A Transactions
Understanding the Importance of EBITDA Multiples, Risk Management, and Growth Potential in Healthcare M&A Valuation. When valuing healthcare M&A transactions, EBITDA (earnings before interest, taxes, depreciation, and amortization) multiples are the key focus. It is possible to determine EBITDA multiples through the calculation of the division of Enterprise Value by EBITDA. The Value is greater […]
Vertical and Horizontal Acquisitions in Healthcare M&A
M&A activity is the primary source of growth in the healthcare industry. In healthcare M&A, Vertical and Horizontal Acquisitions are key strategies to facilitate growth. A Vertical Acquisition occurs when a hospital acquires a company that provides a service, while a Horizontal Acquisition takes place when a hospital acquires another hospital.[1] Horizontal and Vertical Acquisitions […]
Hospital Liabilities In A Healthcare M&A
Researching hospital liabilities in a healthcare M&A is part of the due diligence process to uncover any malpractice suits. The legal due diligence will uncover the target’s history of malpractice lawsuits and current or potential future litigation. According to the National Practitioner Data Bank, [1] medical malpractice payouts amounted to $3.9BN in 2017.[2] All states […]
