Consolidation is rampant among healthcare providers at all levels. C & E has participated in various M&A transactions including:
Hospital Acquisitions
When a hospital or system purchases another hospital, they often inherit lots of “assets” that are not accretive to the transaction. Poorly managed receivables by the acquired entity often fall into this category.
C & E Acquisition Group has assisted acquirers by purchasing the late-stage patient accounts of the acquired entity thereby infusing cash into the transaction and allowing their key personnel to focus on higher value activities such as restructuring debt, enhancing the operation, or merging services.
Hospital Group/System Acquisitions
The purchase of multiple facilities is often complicated by the desire or need to consolidate the new facilities with a centralized financial system and one set of patient accounts. Such consolidations have been simplified and funded by selling late-stage patient accounts.
C & E has the financial and operational depth and experience to assist in transactions of all sizes and complexity. As an organization with national reach and licensing, C & E can assist large, diverse, and geographically expansive healthcare systems.
Physician Group and/or Affiliated Entity Acquisitions
Hospitals increase their points-of-entry in their service areas by acquiring or otherwise affiliating with physician groups, outpatient facilities, and allied health organizations. Hospitals usually provide centralized back-office services to these affiliated entities.
The benefit of a centralized back-office is reduced if it takes-on too many low-value tasks such as collecting old, low-balance patient accounts for new affiliates. Hospitals often don’t have the manpower to handle such low-value tasks made more difficult if affiliates’ billing systems aren’t integrated with the central information system.
When C & E buys affiliates’ patient bad debt, both time and money become available to fold affiliates’ back-office functions into the centralized back-office.
The hospital also experiences best-practices for handling late-stage, low-balance patient accounts. Executives can then confidently evaluate larger, hospital-level transactions and their impact on the hospital’s bottom line going forward.
Divestitures
Although most M&A activity has been acquisitions of independent hospitals, some hospital groups have divested facilities for a variety of reasons. In some cases, the acquiring entity bought certain assets of the selling entity rather than the entity itself and didn’t acquire their aged receivables.
C & E Acquisition Group has experience in purchasing such receivable portfolios. If you own receivables, but not the hospital in which they were originated, there is still value in these accounts and C & E would be happy to provide a valuation of the portfolio.
