A majority of our work is done for banks, finance companies, and investors who lend to or invest in healthcare companies.
Field Exams- These are reports designed to provide the lender or investor with timely evaluations to support decision making regarding their loans or investments. Typical exams include:
Asset Based Exams – Reports are provided to healthcare asset based lenders that derive the security for their loans by specific assets of a borrower, primarily accounts receivable and occasionally inventory and equipment. Engagements typically focus on providing an overview of the business and its financial information, an understanding of the assets securing the loan, and a valuation of those assets as well as potential offsets to those assets. Limited procedures are also performed on cash, accounts payable, payroll taxes and insurance. Lenders typically do field exams prior to closing a transaction with a prospective borrower and then on a periodic basis after closing.
Real Estate Exams – Reports are provided to lenders that are providing a real estate loan to a healthcare provider. Reports focus on validating financials of the prospective borrower, confirming payment of taxes, and providing information on the physical improvements to the real estate being financed.
Quality of Earning Exams – We complete an analysis of a healthcare company’s revenues and expenses to determine the overall reasonableness of reported earnings. This analysis can be an invaluable tool to our clients given the nuances related to healthcare reimbursement and the opportunities provided for companies to be overly aggressive in their recognition of revenue.