Virtual Inspections vs Traditional Site Visits
During challenging times with COVID-19 pandemic, most states have issued a stay-at-home order for the protection of public health. For HMS, as a valuation and transaction advisory firm, this has added another level of complexity to our work involving site visits. As discussed in Alex Kacik’s article in Modern Healthcare, “Pressing Pause on M&A,” transactions have slowed and the “COVID-19 pandemic is threatening to postpone, derail, or force a restructuring of hospital deals”[1]. Nonetheless, many of our clients are still in need of healthcare valuations that typically involve an in-person site visit as a component of project’s scope.
In an effort to be responsive as well as continue delivering accurate and defensible opinions, HMS has developed a way for our clients to complete valuation transactions by utilizing technology in an efficient and effective manner. More specifically, with stay-at-home orders preventing traditional site visits, HMS has designed a streamlined process that:
- takes physical inventory,
- inspects furniture and equipment, and
- assesses real estate properties.
HMS will coordinate the valuation process with all parties involved to ensure minimal inconvenience. The process involves collaborating with either the representative of the physician practice or hospital to obtain the information necessary, including an asset listing with photos. This information can be obtained through a single virtual call in which HMS conducts a live walk through of the space. Once HMS has completed the virtual call and obtained the asset listing with photos, our consultants will conduct the necessary market research and analysis to complete the valuation.
Although some deals are being delayed for various reasons, this process allows our clients to move forward with those acquisition or lease arrangements that are critical to their current business plan.
HMS will continue to partner with healthcare clients as they face the challenges of COVID-19. We are committed to keeping our employees, our hospital clients, and representatives from the physician practices safe, while working to facilitate asset transactions.
Should you need assistance in completing any one of these asset valuations and would like to discuss our process more specifically, please do not hesitate to contact one of our experts today.
[1] Kacik, Alex; Pressing pause on M&A: COVID-19 pandemic is threatening to postpone, derail, or force a restructuring of hospital deals; Modern Healthcare; April 27, 2020; p. 22-25.
