HMP’s financial due diligence services are provided by a team of experienced healthcare executives who analyze the quality of earnings and working capital requirements through financial statements, patient mix and market placement assessments, and on-site discussions with medical staff, management, and board members. Our focused, tailored approach enables us to rapidly identify and understand potential deal breakers, value drivers, and other areas of interest specific to our clients.

Our financial due diligence services include:

  • Assessment of the target provider’s quality of earnings, including the identification of overly aggressive accounting policies and the assessment of the adequacy of third party contractual allowances, as well as assessment for GAAP accounting compliance
  • Analysis of the cash flows revenue cycle (e.g., working capital changes, capital expenditures)
  • Review of on- and off-balance sheet assets and liabilities, including significant operating lease obligations
  • Use of our proprietary financial modeling and data analysis tools to assess market position and payor mix, specifically identifying market opportunities and trends in profitability as well as significant concentrations of risk
  • Evaluation of management’s financial projections and business plans
  • Comprehensive discussion with management and their advisors
  • Performance of both buy-side and sell-side due diligence

We have an extensive list of case studies that describe our approach and results.
Please contact us if you have any questions, or would like to know more about HMP.