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Physician Practice Acquisition Due Diligence


Kohler HealthCare Consulting executives have participated in hundreds of physician practice acquisitions over the past 30 years. Because we have managed medical practices so well, KHC executives are often the first to be called to manage the turnarounds of acquired physician practices that have performed poorly. KHC knows the key operational drivers of Medical Practices and how to leverage those components into successful ventures.


Health systems rely on KHC as the first step in acquiring a physician practice to clearly understand the financial, regulatory, reimbursement, compliance, and operational aspects of the targeted practice. Our physician practice acquisition due diligence process encompasses the following elements:

  • Identifying key characteristics of desired acquisitions
  • Historical financial performance assessments
  • Physician compensation, productivity and RVU calculation/benchmarking
  • Operational expenses benchmarking
  • Professional fee revenue cycle operations assessment and improvement strategies
  • Coding and medical record documentation issues
  • Compliance and regulatory matters
  • Managed care contracting assessments
  • Pro forma financial planning
  • Integration planning, including:
    • Governance
    • Management structure and human resources integration, analysis and planning
    • Physician compensation plan design
    • Office location
    • Ancillary services impact analysis
    • Communications planning

KOHLER HealthCare Consulting, Inc. (KHC) has been a leader in improving Medical Practice Management and conducting Due Diligence reviews for over 30 years.


Good due diligence begins even before an acquisition prospect is identified. Kohler HealthCare can proactively help Clients determine which characteristics are desirable and which are undesirable. This early planning can often streamline the search process by allowing Management to expediently eliminate those practices that will not further the goals of the hospital.


The objective of due diligence is straightforward and simple: minimize the hospital’s exposure to the problems and pitfalls of Physician Practice acquisition. The due diligence process starts with clear and explicit expectations of the benefits the hospital hopes to gain through a proposed acquisition. These anticipated benefits establish the basis for appropriate due diligence procedures, and ultimately ensure a result that provides clear strategic direction for the organization.


Purchasing existing medical practices can create:

  • Stronger market share in a key
    geographic region
  • Introduction of a new service line into established medical services model
  • Improved economies of scale
    and/or strategic positioning
  • Cost-effective expansion of medical care capacity


Contact Charlotte Kohler to help

put the pieces together

(443) 956 − 1434


Collaboration + Knowledge = Sustainable Results

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