Acquisition Analytics Reports: Third-Party, Unbiased Reviews Before You Buy

Healthcare, Pharmacy

September 3rd, 2020

If you’re considering buying a pharmacy or healthcare practice, an acquisition analytics report offers transparency. Learn why it’s so vital.

acquisition analytics

For any person that considers investing in or buying a business, you want to do your due diligence. Ultimately, you need to know if what you’re buying is and can be profitable. In healthcare, much of what buyers want to quantify is the probability of patient retention. To make this assessment, you can ask for data to gauge this, but it could contain omissions or inaccuracies. With acquisition analytics, you receive a third-party, unbiased review, helping you make the best decision. 

What Is an Acquisition Analytics Report?

An acquisition analytics report is a business intelligence assessment of a pharmacy’s or healthcare practice’s financials and patient data. It typically covers the past two years. An analytics provider retrieves the data directly from a pharmacy software system or health information system (HIS). It’s a redacted report with no PHI (protected healthcare information) containing various data elements.

Data elements that make up a report:

  • Average weekly scripts, volume, or patient visits
  • Percentage of new vs. returning patients 
  • Prescriber information (pharmacy)
  • Number of “high value” patients (patients with a large number of scripts or visits)
  • Patient location
  • Payer information (private and public)
  • Percent of controlled scripts (pharmacy) to discern if there’s any risk

The report presents this information to you with comparisons of year over year. From this, you can spot trends and patterns. You’ll gather insights on profits, volume, and more. 

Why Request an Acquisition Analytics Report?

Having access to such a report provides transparency in the process. The provider of the report is pulling real, live data with no manipulation. It’s one of the best approaches to sizing up an investment. Just as you wouldn’t buy a house without an inspection or appraisal, the same goes for buying a pharmacy or healthcare practice.

It’s an integral part of the decision-making process. It complements your other valuation efforts and gives you a broad picture of future profitability. 

How to Choose a Report Provider

Many firms specialize in acquisition analytics. They commonly provide reports in mergers and acquisitions. However, most don’t have healthcare-specific expertise. So, while a company may have years of experience in business intelligence, healthcare is different. 

Here’s why:

  • PHI: Any healthcare report must meet compliance factors regarding PHI. Not all organizations will understand or have processes in place to remain HIPAA compliant.
  • Pharmacy systems and HIS: If a company is going to provide this kind of report, they need to have great familiarity with how such systems work. It’s not the same as a balance sheet or other financial evaluations. 

Thus, it’s a good idea to tap an analytics partner that routinely provides these kinds of reports. They should be able to give you a sample and discuss how they protect PHI. Asking these questions gives you peace of mind that the information is accurate and unbiased.

Make the Best Decision with the Best Data

good decision

Every potential business buyer wants to have as much information as possible to make the best decision. A clear and impartial report on the health of the business is critical for you to move ahead with confidence. 

If you’d like to learn more about our acquisition analytics solutions, contact us today. We also offer a turnkey approach to pharmacy transitions for buyers. Download our product sheet to see all we offer. 

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