"Grading the Risk"

Assessing quality of care is the foundation of your clinical/regulatory due diligence. Identifying and understanding the performance drivers and potential risks of each facility or a portfolio of facilities is the goal of this due diligence.

First Alert Due Diligence is a pre-acquisition and lending analysis which can include HUD Lender Narrative requirements when performed for the Lean 232 application. This includes the identification of potential clinical operating, regulatory and legal exposures for a facility/portfolio. Formation Healthcare Group (FHG) performs a thorough review of publicly reported information and facility regulatory documents and conducts interviews with facility/regional/corporate staff. Some potential risk mitigation opportunities include:

• Identification of historical regulatory issues that may jeopardize facility/portfolio reputation and value
• Understanding of leadership capabilities or limitations which may drive overall facility performance
• Identification of potential clinical performance system issues or areas of deficient practice which may impact quality of care
• Evaluation of physical plant deficiencies which may require capital  improvements or renovation
• Identification of government sanctions/enforcements which may have immediate impact on an investment
• Utilization of our Clinical Regulatory Risk Indicator Score^SM (CRRIS^SM), as appropriate, to define facility risk levels
• Facilitation of key covenants, carve outs or other criteria as part of an investment proposition
   

The FHG executive narrative with detailed reports will provide a comprehensive understanding of clinical operations and regulatory performance by facility and portfolio as well as the corresponding level of risk that may result.