Free Nursing Home Financial Due Diligence Checklist
Nursing Home Financial Due Diligence Checklist
Please thoroughly address each item on this checklist, [Your Company Name] can effectively assess the financial and operational aspects of a potential nursing home acquisition or partnership.
Review the last three to five years of financial statements.
Look for trends in revenue, expenses, profitability, and cash flow stability.
Ensure that an audit has been performed on the financial statements.
Review the audit findings for any discrepancies or issues that were raised.
Analyze the age, turnover, and collectability of accounts receivable.
Consider the impact of Medicare, Medicaid, and private payers on cash flow.
Examine the structure of resident fees and service contracts.
Assess staffing levels, wage rates, and benefits.
Compare these costs to industry standards and consider its implications.
Review expenses to identify any areas of inefficiency or cost reduction.
Pay particular attention to utility costs, and maintenance expenses.
Ensure that we are in compliance with all financial reporting requirements.
Inspect the condition and age of physical assets.
Analyze all debt instruments, leases, and other financing arrangements.
Review tax returns and assess any potential tax liabilities.
Assess the market position of the nursing home.
Review demographic trends and local competition.
Ensure that there are no outstanding legal issues.
Check for any pending litigation or regulatory actions.
Prepare a detailed plan for integrating the financial systems.
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