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:
Introductions & In-Depth Interviews to Gain Understanding of the Situation
Phase I: Evaluation of Practice
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
Phase II: Fair Market Valuation of Practice Assets
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
Phase III: Transaction Assistance
Phase IV: Post-Acquisition Practice Integration
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
