Planning to Sell Your Practice? Prepare for Due Diligence Now

Host Ericka Adler sits down with fellow healthcare attorney Christina Kuta to delve into the steps healthcare practices should take to prepare for the due diligence process associated with a practice sale. They explore the lack of preparation seen in many transactions and highlight why it’s essential for practices to review operational and compliance issues before hitting the market. Ericka and Christina further discuss the impact of compliance reviews on the value of a practice during the sale process and how addressing compliance issues prior to a sale can significantly reduce legal fees. They also discuss common billing issues that arise during due diligence, such as improper documentation and credentialing challenges, and stress the importance of hiring an outside independent auditor for a thorough billing audit. Further examined is the need to review practice compliance plans, detailing what should be included and why potential buyers will scrutinize these documents. Finally, Ericka and Christina take a closer look at the unique marketing challenges healthcare practices face and the critical importance of educating staff about compliance policies.