Due Diligence for Home Health Care Business

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June 08, 2026

by a searcher from Carnegie Mellon University in North & Central New Jersey

Reviewing a home health care business (skilled/medical) primarily funded by medicare part B, for acqusition. Anyone that has experience with financial/business diligence for such a business? Also accepting recommendations. Thank you!
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Reply by a lender
from Cornell University in Los Angeles, CA, USA
Hi ^redacted‌ - nice to meet you. We have a lot experience financing home health care companies via the SBA. If you ever need help reviewing a deal, I am happy to help. This is a great program that allows you to close on a deal with as little as 10% down or even 5% down. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!
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Reply by a professional
from Université Paris in London, UK
Hi @redacted‌ — I run financial and commercial diligence on acquisition targets rather than the clinical/regulatory side, so for the licensing, billing-compliance and survey-history piece you'll want someone healthcare-specialised. But a lot of the things for this deals are sector-agnostic and here are some questions that I would start with: • Payor and reimbursement concentration: pin down the exact mix (Medicare vs Medicaid vs commercial vs private pay) and how exposed the revenue is to reimbursement-rate changes. Worth confirming the payor model precisely; the rate dynamics differ a lot depending on how the services are reimbursed. • Revenue quality: are billed services properly documented and reimbursable? Denial rates and the trend, plus any recoupment/clawback exposure from payor audits. This is where 'revenue' and 'collectable revenue' diverge. • AR and working capital: DSO and AR ageing by payor. Aged or denied claims sitting in receivables can quietly inflate the working-capital picture, which matters for your peg. • Referral-source concentration: how dependent is volume on a handful of hospitals, physician groups or discharge planners? • Labour: caregiver/clinician turnover, wage inflation, and contractor-vs-employee classification risk. • Owner/key-person dependence and what continuity looks like post-close. Happy to talk any of these through if useful. You can email me on redacted
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