Tag: Val Poltorak

Success In Healthcare M&A: The Critical Role of Background Screening  

Valerya Poltorak

By Val Poltorak, head of US Regulated Industries, Sterling

Merger and acquisition (M&A) activity within the healthcare industry has experienced a slow decline over the past couple of years due to the economy’s downturn. However, as we approach 2024, the forecast predicts that M&A activity could rebound. Hospital and health systems are looking for ways to alleviate operational and budget control challenges due to staffing shortages and high wage inflation. In a report by KaufmanHall, hospitals and health systems who underwent M&A in 2023 indicated that financial distress was a key transaction driver.

In this ever-changing environment, healthcare organizations must navigate the challenges, complexities, and risks involved in the M&A process. Some of these risks include omissions of material information, conflicts of interest, verification of credentials, or past criminal activities. To safeguard heath systems’ interests, investments, and reputation, while protecting their patients, an in-depth review and investigation of an organization and its employees should be an integral part of all investment deals.

Mitigate Risk by Introducing Background Screening Providers into the M&A Process

Partnering with a reliable background screening provider early in the M&A process is critical for success. These organizations play a vital role in navigating the complex and often public nature of the process, and can assist healthcare organizations in hitting the reset button on deals and acting as liaisons with the integration teams.

A background screening provider can help hospitals and health systems involved in a M&A by:

The sooner a background screening provider is looped into the developing deal, the better they can position the merging organizations for success.

Digging Deeper: How Due Diligence Can Uncover More Information 

Due diligence is an integral part of all healthcare mergers and acquisitions that go beyond standard background checks. A standard background check is meant to help organizations make an informed selection on job candidates by determining their criminal history and verifying their credentials. Due diligence investigations, on the other hand, seek to take this one step further and uncover information not disclosed by a subject or a business entity. They paint a full picture for your hospital or health system, and can be your first line of defense in protecting your organization from serious financial issues, reputational damage, and even legal repercussions.

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