Are remote audits for physician practice acquisitions right for your organization?
Physician practice acquisitions are part of many health systems strategic plans for 2015. If your organization is targeting smaller practices and a third party onsite audit is not cost effective what is one to do?
During the due diligence process, hospitals will have personnel onsite at a physician practice looking at multiple areas of the business gathering information to determine a fair offer to submit to the physician. i.e. revenues, charts, real estate, tangible assets etc.
Maximizing a site visit with today’s mobile technology can assist when gathering information on tangible assets, minimizing stress on practice employees and patients.
It can be very difficult to capture all demographics associated with tangible assets or provide enough information to a third party firm to properly appraise. If you’re relying on an asset ledger provided by the physician office it may not provide a clear picture of assets located in the property.
Following are benefits of working with a third party appraisal firm to conduct remote audits:
- Cost effective way to target smaller practices (1-5 exam rooms)
- Remote audits are cost comparative to a desktop appraisal
- Only onsite tool needed to conduct a remote audit is a smartphone (blue tooth optional)
- Auditing firms create the report remotely as you call out information from the practice. This eliminates hand writing information and transferring to a spreadsheet for the auditing firm to appraise.
- Auditing firms can guide you where to look for information i.e. manufacturer, model, serial number etc.
- Auditing firms that specialize in medical equipment know
- Remote audits provide flexibility to conduct onsite work after hours or at the convenience of the physician minimizing disruption
- Smartphones allow you to send pictures when needed
- Third party travel expenses are eliminated
- Turn time on deliverables is increased significantly
As you target physician practice acquisitions considered the benefits of partnering with an auditing firm to conduct a remote audit to appraise tangible assets. Acquisitions can be very complex and time consuming. Remote audits can provide a cost effective option to support work associated with the due diligence process.
MRG recently completed inventory and appraisal projects for a Spine Group, Skin Therapy Clinic and Sleep Center in Ohio.
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