Healthcare, Education & Personal Services · Buyer guide
Buying a Hospice & Palliative Care business
Published · Reviewed by The Diligence Standard Team · Updated
a Hospice & Palliative Care business can look attractive on a summary P&L while the operating details underneath it change the cash flow, transferability and capital a buyer will actually own. Diligence should connect the reported earnings to the business-specific drivers that create them.
How the business works
Census, length of stay, payer mix, referral sources, clinical staffing, quality/compliance and reimbursement rules drive value.
Risks to test
- Regulatory/audit exposure
- Referral concentration
- Nurse shortage
- Length-of-stay compliance
- Owner medical/referral relationships
- Working capital
Evidence to request and reconcile
- Census/LOS data
- Payer reports
- Referral detail
- Clinical staffing/licenses
- Audit/compliance
- AR
Decision questions
- What compliance/audit history exists?
- How concentrated are referrals?
- What staffing is required for census?
- How sustainable is length-of-stay profile?
- Which relationships depend on owner?