A Change of Ownership usually occurs when a Medicare provider has been purchased by another organization. The timeline varies between each state but more information can be found with your state’s Medicare office. In the scenario in which the current Medicare provider has not held the license for 3 years, a Management Services agreement will [...]
A PEPPER report is Hospice specific report that analyzes any Medicare claims that may be within risk of improper Medicare payments. They are typically used for internal auditing but can often be a request during a due diligence period. PEPPER stands for Program for Evaluating Payment Patterns Electronic Report.
There are variety of factors that can influence the valuation of a company. Two of the primary ways in which the market values Hospice companies are a price per census patient or on a multiple of their adjusted EBITDA (insert link to EBITDA), or true cash flow. The additional factors that can influence a valuation [...]
If there is a significant CAP risk within an operation, this will likely affect the transaction price or the breakdown of how the funds are dispersed within the purchase. Either those patients that are within risk of CAP issues will hold less value than the rest of the census or a certain portion of the [...]