Case Study

Healthcare Acquisition Diligence Support for $60M Psychiatric Clinic

"Rapid assessment of the due diligence process for the healthcare acquisition to identifying structural and management deficiencies​"


  • Organization has a historically large mix of capitation contracts; largest payor recently transitioned to fee-for-service arrangement ​
  • PE sponsor performed initial accounting and finance diligence prior; wanted to enhance visibility into the post-transition performance​
  • Remaining diligence activities and post-transition analysis has stalled due to data challenges​
  • SLKone was hired to ensure key business processes were ready for integration by developing a reporting process to track key financials and identify process improvement needs upon completion of the transaction

Bespoke Solutions

  • Executed site visit to facilitate data transfers while adhering to HIPAA standards​
  • Interviewed management to evaluate business acumen and ability to effectively lead organization and reverse losses​
  • Assessed operations and processes​
  • Created patient volume and cash flow model to enhance visibility​
  • Identified liquidity issues exacerbated by A/R delays due to change from capitation to fee-for-service contracts; negative cash flows, potential pension fund liabilities, and personnel gaps

Leading With Results

  • Developed custom updateable, weekly patient volume and collections reporting tool
  • Completed outstanding high priority, legal, and tax diligence items ​
  • Identified and remediated 10+ structural and management deficiencies​
  • Improved future processes. Identified opportunities for improvement regarding future credentialing process
Case studies and expertise may represent projects and engagements performed by SLKone team members prior to their employment at SLKone