Vcheck helps healthcare fund avoid acquiring clinics with HIPAA violations.
USE-CASE
Pre-Investment/M&A Due Dilligence
REGION
United States
INDUSTRY
Private Market Investors
problem
A fund focused on the US healthcare market was evaluating acquiring a series of medical clinics owned by a group of physicians. The fund engaged Vcheck to conduct a background checks on the medical clinics and their owners. The fund was concerned about industry specific risks such as HIPAA violation and other privacy related issues.
solution
Vcheck found litigation concerning allegations of HIPAA violations directly involving one of the owners including unauthorized access to patient medical records and the disclosure of patient information to third parties without consent. Vcheck armed its client with actionable intelligence to help facilitate the deal and not kill it. As a result of the research, the fund was able to restructure its acquisition offering and remove one of the owners.