Healthcare merger and acquisition deals can provide multiple opportunities for financial growth. Healthcare is generally a stable and often growing market, so investments tend to pay off. But how can you better ensure that your deal pays off?
First, figure out how much of an investment you are comfortable with. A recent example involved a Texas-based company taking over two hospitals and nine medical clinics. Platinum Team Management stated the move was not just a great financial opportunity, but also helped to preserve quality healthcare in the area as the facilities were scheduled to close before they intervened. This deal will cost millions upfront but is not the only way to get into the healthcare market. Other options can include providing funding for a private practice or home health services business. Whether looking for a big or more manageable investment, the following tips can help to better ensure that investment pays off.
#1: Consider the tech.
The last few years taught us the importance of having strong and current technology. Even before the pandemic business experts recognized that healthcare facilities need to have tech advances that work for their field to help lower the cost of healthcare. For some this includes the ability to conduct virtual visits, for others more refined digital records.
It is important to note that a lack of proper tech does not mean the transaction is a bad deal. It could signal an opportunity for growth. Complete due diligence to see if this is beneficial or too much of a risk.
#2: Check for compliance.
The healthcare industry is highly regulated. Make sure any target clinic or group is following those regulations before providing funding. A violation can result in financial penalties and, in some examples, potential imprisonment of bad actors.
Attorney John Rivas is responsible for this communication