Selling your healthcare practice? RCM due diligence guide.
PE buyers and strategic acquirers scrutinize RCM operations during diligence. Practices with clean, defensible RCM operations achieve materially higher valuations. This page covers the RCM diligence playbook from the seller's perspective.
What buyers look for
Clean financials reconciled to billing system. Documented RCM operating procedures. Denial rate and AR aging trending well. Payer contracts current and favorable. Credentialing pipeline current. Clean audit history. No compliance landmines.
12-month diligence prep
Start RCM diligence prep 12 months before sale. Time to clean up operations + show trending improvement. Buyers credit improving trends; they discount static or declining trends. Document everything.
Quality of earnings (QOE) defense
Buyers will commission Quality of Earnings analysis. RCM data feeds QOE significantly. Pre-emptive QOE prep prevents surprises during diligence. Identify and address QOE risks before buyer's analyst finds them.
Common diligence findings that destroy deal value
Untracked denial backlog. Aged AR over 120 days. Missing payer contracts. Lapsed credentialing. Documentation that doesn't support billing. Pending audits. Each finding represents either a price reduction or deal failure.
Anonymized engagement walkthrough
ASP-RCM regularly supports sellers through RCM diligence. We organize the data room, build the trending analysis, defend the operations during buyer scrutiny, and translate technical RCM context for buyer financial analysts. Anonymous example: rural hospital client documented in our case study library.
Free seller-side diligence consultation
Confidential consultation for healthcare practice owners considering sale. 30-minute call with senior partner to assess diligence readiness + identify priority cleanup areas + outline 12-month prep playbook.
Don't wait. Get a senior partner on this.
ASP-RCM senior partners do same-day consultations on operational distress situations. 30 minutes. No SDR triage. Diagnostic conversation. You leave with a plan whether or not you engage us further.