Monarch's financial and operating partners validate financial performance by reconciling accrual-based reporting with actual cash collections, reimbursements, and expense trends. Our analysis confirms earnings accuracy, identifies revenue leakage, and quantifies reimbursement or audit risk that may affect valuation.

Scope of Review:

• Full review of historical and pro forma financials, including accrual-to-cash reconciliation, revenue cycle performance, and payer mix accuracy

• Validation of reimbursement rates, contractual terms, and collection efficiency

• Analysis of cost structure, margins, and expense allocation by service line

• Review of P&L statements, revenue drivers, and expense management to confirm earnings quality and cash flow sustainability

Your Monarch compliance partners will assess licensing, accreditation, and payer enrollment across federal and state levels to uncover compliance or reimbursement vulnerabilities that may impact growth or transaction value.

Scope of Review:

• Comprehensive review of state and federal licensing, accreditation, and payer enrollment

• Identification of exposure tied to Medicare, Medicaid, and commercial payer regulations

• Evaluation of documentation, coding accuracy, and reimbursement integrity

• Review of historical audits, corrective actions, and payer recoupment trends

• Quantification of compliance risk and its financial impact on valuation and post-close stability

Your Monarch clinical diligence partners will evaluate the clinical and operational health of the organization to ensure alignment with quality, efficiency, and scalability standards. This includes documentation practices, workforce capacity, leadership strength, and data integrity.

Scope of Review:

• Evaluation of treatment models, service mix, and adherence to evidence-based standards

• Review of documentation quality, staffing adequacy, and outcomes measurement

• Psychiatric and medical review of prescribing oversight, governance, and quality assurance

• Assessment of workflow efficiency, technology infrastructure, and operational scalability

• Analysis of leadership capacity, reporting systems, and geographic growth potential

Our Monarch legal consultants will review critical contracts and organizational structures to identify hidden liabilities, compliance gaps, or ownership conflicts that could impact the transaction or ongoing operations.

Scope of Review:

• Review of payer, management, vendor, lease, and employment agreements

• Identification of contingent liabilities, litigation exposure, and compliance-related risks

• Verification of corporate structure and adherence to healthcare ownership laws

Our Monarch strategists assess market dynamics, payer trends, and competitive positioning to identify growth opportunities, scalability, and sustainability within the target’s operating model.

Scope of Review:

• Analysis of competitive landscape, geographic payer trends, and market saturation

• Evaluation of growth sustainability, scalability, and integration readiness post-acquisition

Identification of referral networks, brand strength, and marketing leverage points