Feasibility Study for an Investor Group Considering the Acquisition of a Rural
An investor group approached The Osborn Group, LLC to conduct a feasibility study for the acquisition of a CAH (Critical Access Hospital) in the Southern part of the United States. The goals were to compile and submit a proposal in compliance with current published RFP guidelines by the former operator, conduct a comprehensive feasibility study regarding the project, review and advise regarding change of ownership standards/requirements for licensure, and advise the investor group regarding the feasibility of the acquisition including outlining the procedures, steps and regulatory considerations that would be necessary to re-open a CAH (Critical Access Hospital) which had
recently been closed.
Number of Investors: 8
CAH Locations: 1
Potential Investment Required: $ 6 Million
Region: Southern United States
Time was of the essence for this investor group who needed to submit an RFP (Request For Proposal) by a fast approaching deadline. In addition, a determination was further needed to assess the feasibility for the group to acquire the CAH (Critical Access Hospital) which had been recently closed in their native, rural southern community. The management consulting / healthcare team of The Osborn Group, LLC compiled and provided the group with a formal RFP proposal which was accepted and pursued a comprehensive feasibility study for that included a community needs assessment, a regulatory compliance guide, provider/payer information and potential funding sources.
The Feasibility Method
1. Complete & Submit RFP
3. Develop Strategic Plan and Complete Feasibility Study
5. Recommend Funding Sources & Supply Compliance Guide
2. Complete Community Needs Assessment & Gather Historical Data
4. Engage Community Leaders, Healthcare Professionals & Medical Providers
The investor group successfully was awarded the RFP bid allowing due diligence time and outlining the steps for a formal feasibility analysis. The due diligence process included a site visit, community needs assessment, collaboration with community leaders, collaboration with state and federal legislators regarding access to rural healthcare & corresponding regulatory concerns, a property inspection, identification of potential funding sources, collaboration with state and federal agencies compiling licensing requirements to re-open the hospital, completion of a strategic plan and publication of a final feasibility report. Our healthcare consulting team performed a rapid response approach resulting in over 400 hours of expert consulting work and review completed in under 60 days. The final recommendation outlined the feasibility outcome and provided the investor group with the resources they needed to determine
whether they would proceed.