Background
Quorum Health Corporation (Quorum), an operator of 12 acute care hospitals in nine states, completed an acquisition of certain Steward Health Care hospital assets in Texas.
Ankura Involvement
The healthcare-focused transaction advisory professionals within Ankura's Transaction Advisory Services practice were engaged to provide comprehensive buy-side financial and accounting due diligence services. Our team conducted an in-depth quality revenue analysis, meticulously handling vast amounts of data. Additionally, we performed a detailed analysis of revenue and related reserves concerning federal and state cost reimbursement and supplemental reimbursement programs. The analyses were crucial for Quorum, allowing them to accurately assess the historical revenue recognition of the hospitals they intended to acquire and ensuring Quorum's valuations were based on the most accurate financial information. Ankura's detailed revenue analyses provided Quorum's finance and accounting team with the required information and support in connection with post-transaction integration and revenue recognition. In addition to these services, Ankura was engaged to provide strategic and organizational planning to streamline the post-transaction process.
Value Delivered
Through Ankura's thorough analyses of the acquired hospitals' quality of revenue and key performance indicators, Quorum was equipped to make well-informed decisions and achieve seamless integration of revenue cycle and financial reporting functions. This enabled their accounting team to seamlessly integrate revenue recognition processes post-transaction.
"The Ankura Transaction Advisory healthcare dedicated team's in-depth healthcare industry knowledge, responsiveness, and meticulous attention to detail allowed us to swiftly navigate the transaction while making informed decisions along the way. Their efforts provided us with a deeper understanding of the acquired hospital's revenue quality and key performance indicators."
– Chris Harrison, Chief Executive Officer
About Ankura Transaction Advisory Services
Ankura's Global Transaction Advisory practice is dedicated to offering investors and lenders critical insights for successful deal completion. Our team leverages vast operational, industry, and functional expertise to evaluate the earnings quality, operational drivers, and working capital needs of businesses.
Our sector expertise spans healthcare, technology, manufacturing, distribution, consumer goods, retail, restaurants, and business and industrial services. With senior deal professionals actively engaged at every transaction phase, we deliver prompt updates on significant deal factors and conduct focused analyses on any critical issues, ensuring thorough understanding and resolution of underlying concerns.
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