Overview
Confident Decisions Start with Comprehensive Insight
Evaluating physician practice acquisitions or alignment opportunities is no small feat. Health systems must navigate a maze of operational, financial, and strategic considerations to ensure every decision drives long-term success. Traditional due diligence often falls short—missing critical inefficiencies, compensation misalignments, and hidden risks, while overlooking the motivations of key stakeholders.
HSG Advisors’ Acquisition and Due Diligence Support changes the game. Our rigorous, data-driven approach delivers the clarity and objectivity you need to make informed decisions and achieve seamless integration. We uncover what others miss—operational gaps, financial pitfalls, and cultural dynamics—so you can avoid overestimating value, mitigate liabilities, and align future performance expectations with confidence.
How We Work
The Challenge: Traditional Due Diligence Often Falls Short
Many assessments overlook inefficiencies, flawed compensation structures, unseen risks, which leads to:
- Difficulty obtaining a comprehensive view of practice operations, financial health, and provider productivity, leading to incomplete or biased assessments.
- Limited benchmarking against industry standards, which can obscure inefficiencies or outlier compensation arrangements.
- Insufficient analysis of provider compensation models, alignment with productivity, and impact on future employment or integration.
- Fragmented stakeholder engagement, resulting in misaligned goals and overlooked concerns during acquisition or alignment discussions.
- Inadequate review of revenue cycle, payer mix, staffing, and ancillary services, which may hide operational risks or opportunities.
- Lack of actionable reporting and iterative financial modeling to support negotiation and post-acquisition planning.
HSG’s practice due diligence and acquisition assessment process offers health systems a comprehensive, objective approach to evaluating physician practices prior to acquisition or alignment. Through a combination of onsite interviews, detailed operational and financial analysis, and benchmarking against industry standards, HSG delivers actionable insights and recommendations to guide decision-making and integration strategies.
Strategic Benefits and Deliverables
- Comprehensive operational and financial assessment: Evaluate charges, collections, provider productivity, compensation alignment, staffing, and revenue cycle performance to identify strengths and risks.
- Industry benchmarking: Compare key operational indicators and compensation models to national standards, highlighting areas for improvement or concern.
- Stakeholder engagement: Conduct structured interviews with practice owners, providers, and hospital leadership to understand motivations, goals, and potential barriers to alignment.
- Compensation and productivity analysis: Review provider compensation methodologies and their alignment with productivity, supporting fair market value and compliance.
- Risk identification: Assess contracts, liabilities, payer mix, and ancillary services to uncover potential risks or integration challenges.
- Iterative financial modeling: Develop multi-year operating proformas under proposed alignment models, supporting negotiation and post-acquisition planning.
- Actionable reporting: Deliver clear, detailed reports summarizing findings, recommendations, and financial projections to support executive decision-making.
By uniting objective, data-driven analysis with expert consulting and stakeholder engagement, HSG’s due diligence and acquisition assessment process empowers health systems to make informed decisions, mitigate risks, and achieve successful physician practice integration
