Published by ImagingBiz
When contemplating a potential transaction between an imaging center and a hospital, including the appropriate people and committing to transparent communication between the parties are essential to promoting a successful transaction environment. In order to achieve the desired goals of both parties, several key individuals should be active participants during the entire deal cycle, including the administrator and/or key executive from the center, a hospital representative, legal counsel for both parties, and an experienced valuation company.
The center administrator and/or key executive should expect to be heavily involved throughout the entire transaction process. This involvement usually begins as soon as the two parties start discussing a potential agreement and is unlikely to end until the transaction has been signed and finalized. Initially, administrators should expect to be asked to provide a lot of information regarding the historical operations of the center, from both financial and productivity perspectives. The more transparent and upfront the center’s managers can be regarding any potential historical issues or disparities, the more quickly those concerns can be discussed (and the sooner all parties can become comfortable with the results). In addition to the historical operations of the center, its managers should spend a significant amount of time considering expected future operations. These might range from expected volumes to future reimbursement expectations (and potential changes) to future capital-expenditure requirements to current and potential competition in the local market.