PYA Principal Valerie Rock was recently quoted in “Private Equity Dives Into Compliance, Clinical Risks as Investments Grow,” an article that explains the increased due diligence—investigating compliance risk, including coding, revenue cycle, and clinical standards—conducted by private equity (PE) firms when acquiring physician practices and other types of providers.
“Over the past three to four years, there’s been an increase in requests for coding reviews,” says Valerie Rock…with PYA in Atlanta, Georgia. “It used to be all they would do is financial reviews, but they realized that was not where the financial risk was. When a practice is audited, the financial impact of coding errors could take down the practice.” Rock says PE firms increasingly realize they must audit “targets”—the physician practices and other entities they buy—to identify [evaluation and management, coding errors, procedural coding errors,] and other compliance liability.
Read the full article from the Report on Medicare Compliance on the Health Care Compliance Association’s (HCCA) COSMOS, an online platform for easy access to the latest compliance information.
If you would like more information about due diligence in healthcare acquisitions, or would like assistance with any matter involving strategy and integration, or valuation, contact a PYA executive below at (800) 270-9629.