That’s where HCN fits in. Healthcare is one of the most highly regulated industries. It’s complex, detailed and frequently shifting. Our three-plus decades on the frontlines of physician and medical organization regulatory compliance has given us the experience to assist PE firms with understanding risks and value in the due diligence process.
Due Diligence, Through Post-Acquisition Services
HCN compliance specialists help investors identify compliance issues that may impact valuation and bring them to light early in the acquisition process. We expose things like billing and coding inaccuracies which can affect the purchase price, risks of penalties, exclusions and sanctions, and other compliance issues that may impact the organizations’ bottom line. We can also determine the adequacy and sustainability of the companies’ overall culture of compliance which, from a due diligence perspective, is a critical indicator of business continuity post-closing.
Considering post acquisition, HCN has developed specific programs like our unique Compliance as a Profit Center™ (CapC), which uses our compliance initiatives to uncover new sources of profit and bottom line growth, as well as increase margins and EBIDTA at acquired companies.
We offer a wide range of programs and services to help PE firms protect and grow the value of their investments.
Private Equity Programs and Services
Pre-Close Due Diligence
Confidence to proceed with a deal at the correct value
Coding Compliance Chart Audit
Performed by a certified coder, HCN will validate the accuracy of the target organization’s coding, documentation, and billing practices.
Our review will encompass the following compliance and billing considerations:
CPT (procedure) code and modifier assignment
National Correct Coding Edits (NCCI) for bundling/unbundling issues
CMS National Coverage Determinations
Local Medicare Coverage Determinations
Review of orders for completeness and to determine if the order matches the tests performed
Assignment of appropriate ICD-10 (diagnosis) codes
Due Diligence Compliance and Document Review
HCN will provide an in-depth analysis of the current state of compliance as it relates to the acquisition target organization. This assessment provides an analysis of the current state of the organization related to their Compliance Program, HIPAA Privacy and Security, and OSHA compliance.
The audit will assess compliance with the following provisions:
The privacy and security of client information based on the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security standards including related Policy and Procedure review.
Occupational Health and Safety Administration requirements related to Title 29 of the Code of Federal Regulations
Health Care Compliance Program requirements under Section 6401 of the Affordable Care Act and under the Federal Sentencing Guidelines.
Patient Protection and Affordable Care Act of 2010 (PPACA)
Confidentiality of Substance Abuse Disorder information under 42 CFR Part 2 (as applicable)
General Data Protection Regulation OJ L 119, 04.05.2016; cor. OJ L 127, 23.5.2018 (as applicable)
Post Close Compliance Continuity
Maximizing investment value and protecting assets
Compliance as a Profit Center
Excellent compliance is a critical cost for Healthcare Organizations wishing to avoid expensive penalties. But now, through our innovative CapC process we have been able to turn the tables on that corporate cost, by using compliance initiatives to uncover new sources of profits and bottom-line growth.
Get full payment for billed services
Fully bill for all delivered services
Evaluate and act on new opportunities to participate in value-based care and at-risk plans
Co-Sourced Compliance Officer Partnership (CCO)
Our Co-Sourced Compliance Officer can work with a healthcare business to build, implement, manage and maintain an effective compliance program. We partner to develop and integrate all elements of the compliance program through our team of experts to bring a program to standard quickly and ensure it operates consistent with regulatory and program standards.
The co-sourced compliance officer assigned will help develop and integrate all the elements of the compliance program, including but not limited to:
Provide overall compliance program direction
Develop a culture of compliance and maintain compliance awareness
Develop and implement compliance operations policy and procedures
Prepare annual risk assessment and annual audit workplan
Oversee auditing and monitoring activities
Confirm contract compliance
Develop and maintain a compliance reporting system and investigations
Provide changes and updates on the regulatory environment to executives and compliance personnel
Report on program progress to corporate officials including the board and the compliance committee
Monitor new services and workflow changes for risk
Business Associates – Vendor tracking/BAA
Monitor billing compliance activities
FWA, HIPAA, OSHA and Harassment Training – new employee and annual
The Importance of Full Threat Assessments
After surveying thousands of physician practices over the last thirty years, we are still surprised at how many calls we receive about what a Full Threat Assessment looks like. This is especially true of the ones that are required by insurance companies, as well as by...
Healthcare Highlights from the Presidential Proposed FY24 Budget
President Biden released his proposed FY2024 budget at the beginning of March. Though the budget must still clear the hurdle of Congressional approval, its final version is likely to have significant impact on health care organizations. The proposed changes cast a...