Practice Acquisition

Practice Acquisition Opportunities for Rural & Community Hospitals

For Rural & Community Hospitals facing challenges in provider recruitment simply due to their location, a potential practice acquisition presents a unique opportunity to grow the hospital’s market and improve the community’s access to care. According to a survey by Merritt Hawkins, providers are more interested in hospital employment than private employment, but the challenge of recruiting to a rural location remains. A deep understanding of the market factors, an appreciation of the rural healthcare landscape, and a thoughtful, data-driven strategy are critical factors for a successful practice acquisition.

Stroudwater’s experienced Rural & Community Healthcare consultants guide hospitals and private practices through every aspect of this complex process. Our team provides analysis of the overall value of the practice, its potential strategic value to the hospital, operational needs for successful integration, and advisory services around transaction structure and post-transaction compensation. We are there to provide meaningful and beneficial negotiation support, provide necessary, fair market valuation information, and give the administration the essential analysis for key decisions.

What to Expect from Stroudwater’s Practice Acquisition Support

We are deeply committed to improving rural quality and operational performance, and the right practice acquisitions can support this endeavor. Through our extensive experience, our team has developed a systematic approach to guide Rural & Community Hospitals and private practices through the practice acquisition process. We integrate our understanding of rural hospital and clinic finance and operations with strategy in real-time to assess the feasibility of initiatives and provide process guidance for a successful practice acquisition.

No two practice acquisitions are the same, but our approach outlined below applies in all situations:

Our team will conduct interviews with key players to thoroughly understand the client organization’s unique context, including goals, challenges faced, and reasons the acquisition is being considered.

We will conduct a thorough evaluation of the Practice to assess its suitability for acquisition. The evaluation may include an analysis of operational integration needs and a financial proforma that can be shared with the transaction target. Our team will examine clinic financial statements, schedules, productivity information, staffing information, and other sources of data to evaluate the opportunity associated with the acquisition target and the full cost of integration. A comprehensive analysis is provided outlining the following:

  • Financial Performance
  • Operational Efficiency
  • Market Analysis

Our team employs industry-standard methodologies and extensive market research to ensure a fair and accurate valuation of the provider practice’s assets. The valuation process will include the following:

  • Tangible and Intangible Asset Assessment
  • Financial Valuation
  • Risk Assessment
  • Fair Market Value Determination
Should the rural or community hospital choose to move forward based on the analysis provided, our advisors will support the hospital through all aspects of the transaction. Our team will work with legal counsel to ensure efficient and effective negotiations. Transaction assistance may include project management, integration planning, workflow analysis, operational dashboard creation, and other initiatives.

When a successful transaction has closed, our consulting team can support the work of integrating the acquired practice into the existing organizational framework. Our post-acquisition integration services typically include the following:

  • Strategic Planning
  • Cultural Integration
  • Process Optimization
  • Performance Monitoring

The Practice Acquisition Team

JD, MBA, CVA

Principal

Physician Practice

MPH

Senior Consultant

Mergers, Affiliations & Partnerships

MBA, CPHQ

Consultant

Clinical & Quality

Contact Stroudwater to Learn More About Practice Acquisition Support

At Stroudwater, we have an all-encompassing devotion to rural healthcare nationwide. Our team is driven each day by the conviction that every rural community deserves a compassionate and quality healthcare delivery system, and practice acquisition can be an essential part of bringing needed care to our client communities.

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