Guiding Your Organization to Compliance Health and Keeping your Healthcare Data Private and Secure
Case Study: M&A Due Diligence - Hospital Acquisition
A private capital firm considering the acquisition of a community hospital wanted to validate the purchase price, effectively measure the target’s post-acquisition compliance and regulatory risk, and determine any future costs required to remedy deficient areas in the hospital’s compliance infrastructure.
Compliagent’s Actions: We reviewed the hospital’s existing compliance infrastructure and past compliance issues, including: fraud and abuse concerns; Medicare conditions of participation and licensing matters; Medi-Cal, HIPAA, and Office of Statewide Health Planning and Development compliance; and medical staff governance. We reported our conclusions in a memorandum, identifying areas where the hospital appeared to be functioning without issue, as well as deficient areas that needed to be aligned with industry best practices and regulatory requirements. We also made recommendations to mitigate future risk, including the creation of a policy committee to conduct quarterly policy and procedure reviews; an education and training committee to determine need and conduct staff trainings; and compliance committee input, reporting structures and lines of communications with the hospital’s board.
Outcomes: We concluded that the target hospital was operating substantially in compliance with legal and regulatory requirements applicable to a California acute care hospital. The transaction closed.
“We appreciate Compliagent’s guidance in the highly-specialized area of healthcare compliance, which helped us close the transaction.”