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Are you considering purchasing, merging with or selling a home care agency or hospice?

Updated: May 16, 2023

Purchasing, merging or selling a home care agency or hospice

Mertz Taggart and McBee have collaborated on numerous transactions over the years. The following is one example of the many risk areas we uncover during our diligence process.

“Knowledge is power” is a universal truth across many settings and industries, including post-acute mergers and acquisitions. Having the most current and accurate information possible is key whether you are evaluating day-to-day operations, preparing to put an organization on the market, or as a buyer evaluating a potential home health acquisition. Confidence in your data and compliance makes the difference between real value and breezing through due diligence, and a long, difficult, and disappointing process.

M&A Due Diligence

  • One of the most significant aspects of clinical diligence reviews is technical issues around face-to-face (F2F) requirements, such as the encounter visit completed by the certifying physician. If the F2F visit records are not completed in a timely manner or do not match the reason for service, it can have serious ramifications.

  • Though there have been no changes in F2F regulation, many organizations have F2F elements that do not meet Medicare billing requirements that can put the full reimbursement amount at risk.

  • A weak F2F completion process can be indicative of more significant compliance or performance issues in an agency.

Understanding any potential level of risk is a vital part of the clinical due diligence process. Whether determining if you are compliant now, preparing for a sale, or evaluating a potential acquisition, a thorough clinical compliance review will help organizations understand their historical trends, evaluate current risks, as well as identify specific areas for improvement. These diligence assessments provide vital insight into how well an organization is delivering care with complete and compliant documentation to justify that the services provided meet Medicare regulations.

This is the first in a series of home health & hospice transaction considerations. Next up will be examples of face-to-face weaknesses and failures that have been encountered.

About McBee

McBee is a recognized leader in providing financial, clinical and operational strategic advisory services that have addressed the unique needs of more than 3,800 providers across the healthcare industry. Since 1973, McBee has designed services to address challenges and ensure the success of healthcare organizations across the continuum of care by delivering meaningful insights, tailored strategies, and sustainable results. With an average of over 20 years experience, McBee’s consulting professionals have extensive expertise and in-depth knowledge of healthcare regulations, operations, and policies. Home health, hospice, long-term care, skilled nursing and other healthcare organizations across the nation look to McBee to provide comprehensive services and expert resolution of the various issues they encounter.

McBee is a trusted strategic advisor to our clients in their efforts to go-to-market or conduct buy-side clinical compliance reviews. During the 2020 calendar year, McBee supported our clients in completing 19 publicly reported transactions carrying a purchase price exceeding $1.8 billion *(based on disclosed purchase prices only). Our commitment to our clients, compliance and quality is unmatched in the industry.

McBee’s unwavering dedication backed by their industry knowledge has made them one of the largest, well-regarded healthcare consulting firms in the country. They are located in Wayne, Pennsylvania with additional offices around the country. For more information, please visit

About Mertz Taggart

Mertz Taggart is an industry-leading mergers and acquisitions firm specializing in home health, home care, hospice, and behavioral health. This focus yields invaluable insight into the challenges and opportunities operators face. The depth of our industry knowledge is garnered by our relationships with industry leaders, knowledge of buyers’ acquisition strategies, and our hands-on experience owning and operating a healthcare company. Our competitive advantages translate to maximizing value for our clients, as proven by over 100 successfully completed healthcare transactions since 2006.

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