Acquisition Phase

The Acquisition Phase is often characterized by rapid acquisition, with little time applied to developing a strategic alignment strategy, sustainable transaction structure, valuation parameters, compensation model or the infrastructure to operate the employed practices.


Alignment Strategy

Developing a sustainable alignment strategy not only looks good on paper, but also maps the realities of how anticipated changes in the payor and population health management/accountable care environments may play out in your specific market, which are key components to long-term success.

Transactional Structuring

Urgency to “get the deal done” often leads to a wide array of acquisition structures, employment terms and compensation models, which may prove difficult (if not impossible) to standardize as the network matures.

Developing a flexible yet standardized front-end approach is easier with Delta. Over the last 25 years we have seen what works and what doesn’t. This level of experiences translates to valuable insight into the long-term sustainability of the network.

  • For hospitals, this means that success is not measured by how many physician practices are acquired, but rather, whether those practice assets are being operated within appropriate levels of loss.
  • For physicians, this means maximized value, post-sale compensation, staff retention and some preservation of operational decision making.

Practice Valuations

A Delta valuation delivers more than expected. Our valuations are comprehensive and provide valuable insight into the financial foundation and performance of a practice. This information is critical to post-acquisition operations and structuring physician compensation. We will also address critical threshold issues, such as policies regarding willingness to purchase intangible assets (copyrights, goodwill, trademarks), an in-place trained workforce and/or medical records.

Compensation Model

Post-acquisition compensation is usually the most important aspect of the transaction for both the physician and the hospital.

  • For the physician, compensation is likely the determining factor in accepting an employment offer.
  • For the hospital, it is often the single most important barrier to future financial performance.

Establishing a compensation model that aligns incentives and meets regulatory requirements for both fair market value and commercial reasonableness is paramount to a successful and fruitful partnership.

Delta’s expert consultants will help you develop innovative and sustainable compensation models that align incentives—now and as the payor environment evolves—to create win/win partnerships between hospital and physicians.