Due diligence during an acquisition should include an assessment of clinical compliance — and potential pitfalls
A strategy to acquire something — a physician practice, an ambulatory surgery center or another hospital — can be desirable for improving an organization’s care for its patients, their families, and their communities. Service fragmentation and duplication add cost and complexity to patient care, while integrated delivery systems promise efficiency and strength.
Frequently lost in the acquisition process, however, is the need for one additional focus in the usual due diligence: the compliance of the planned acquisition with Centers for Medicare & Medicaid Services Conditions of Participation, in addition to compliance with state regulations and national accreditation requirements.
Why is this breadth of compliance so important? What are the risks of failing to uncover any deficiencies in the physical environment, infection control, quality assurance and other frequent risk points? How can this step be included in acquisition due diligence? These are the subjects of this discussion. But first, a disheartening story.