Healthcare, Education & Personal Services · Seller readiness
Selling a Healthcare Services business
Published · Reviewed by The Diligence Standard Team · Updated
Owners should prepare provider-level production, payer mix, collections, credentialing, compliance, staffing and transition plans before a buyer begins diligence.
How the business works
Provider productivity, payer mix, reimbursement, compliance, patient retention and clinician availability determine transferability and cash flow.
Issues to resolve
- Owner/provider production is mixed with enterprise earnings
- Billing records do not reconcile
- Credentialing/contract transfer is unresolved
- Compliance files are incomplete
- Provider retention is uncertain
Evidence to request and reconcile
- Provider-level production
- Payer and collections reports
- Credentialing/contracts
- Staff payroll and licenses
- Compliance/audit history
- AR aging and billing reports
Decision questions
- What profit remains after market compensation for clinical work?
- How long will credentialing take under new ownership?
- Which payers or referral sources drive most collections?
- What AR is truly collectible?
- Which providers are essential to continuity?