Due Diligence Assessment Guide

due diligence

Johns Hopkins Medicine's Due Diligence Assessment Guide is a useful tool to ensure that you obtain all of the relevant information required from a prospective business partner prior to contract signing. Doing effective due diligence may be the most important business-related activity you will perform for your company. For every prospective Johns Hopkins business venture, we perform due diligence to thoroughly investigate and then evaluate all relevant aspects of the past, present, and the future (as best we can know it) of the people and firms with whom we propose to do business.

Special Offer: Buy this Solution with Johns Hopkins Medicine’s Comprehensive Business Plan Development Guide for only $250 for both Solutions.
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UTILIZATION

This protocol has been used most recently in Johns Hopkins’ successful negotiations with All Children’s Hospital, in St. Petersburg, Florida, Sibley Hospital, in Washington, DC, and the watershed agreement with the Ministry of Health of Kuwait, which calls for Johns Hopkins International to assist the Kuwaiti government in raising the standard of health care delivery at four of Kuwait’s five secondary care public hospitals -- Hopkins’ largest international collaboration to date.

COMPONENTS

  • A 30-page User’s manual that includes:
    • An overview regarding why due diligence is important from the vice president of finance and CFO of The Johns Hopkins Health System
    • Detailed guidance on conducting an effective financial due diligence
    • Detailed guidance on conducting an effective legal due diligence
    • A guideline for how to assess the due diligence information you gather.

    Depending on the scope of the deal, due diligence can take days to months. But no matter how long it takes, we have found that we get the best information, and the best results, when we follow this comprehensive template developed by our finance unit. This Users’ Manual provides the details that will allow you to be both thorough and consistent, one opportunity to another. In many cases you may be disappointed that a promising opportunity is not going to work out. But of course that’s precisely what you want to know before you sign a contract. The following Solution Overview is a downloadable PDF to share with colleagues, decision makers and interested parties at your hospital or health system. This informative one-page piece offers a snapshot overview of the Solution to highlight and easily share the Solution summary, key components and outcomes.

  • SOLUTION COMPONENTS

    The Due Diligence Assessment Guide, Includes:

    • A 30-page User’s manual that includes:
      • An overview regarding why due diligence is important from the vice president of finance and CFO of The Johns Hopkins Health System
      • Detailed guidance on conducting an effective financial due diligence
      • Detailed guidance on conducting an effective legal due diligence
      • A guideline for how to assess the due diligence information you gather.

    ABSTRACT:

    The Due Diligence Assessment Guide is a useful tool to ensure that you obtain all of the relevant information required from a prospective business partner prior to contract signing. Doing effective due diligence may be the most important business-related activity you will perform for your company. For every prospective Johns Hopkins business venture, we perform due diligence to thoroughly investigate and then evaluate all relevant aspects of the past, present, and the future (as best we can know it) of the people and firms with whom we propose to do business.

    Once you determine that you want to move forward with them, formal due diligence is to confirm that your proposed business contacts are who they say they are and, perhaps more importantly, determine if their business or its practices or its people present something that would kill the deal such as financial, legal or practice improprieties or a misrepresentation of their capabilities or capacity. You also need to ensure that doing business together will not present a conflict of interest or if it does, how to manage that conflict.

    This comprehensive guide is easily adapted to your particular institution and the scope of the proposed relationships.

    OBJECTIVES:

    How are the components of the Due Diligence Assessment Guide used?

    Detailed guideline for how to maximize a due diligence process and how to assess the results.

    What problems or objectives does this Solution address?

    Many organizations either do not conduct due diligence prior to entering into a business relationship or when they do, they don’t always gather all the relevant information to guide their decision making.

    How was the Solution developed?

    Developed by the Financial Analysis Unit at The Johns Hopkins Health System to standardize a substantive due diligence process that could be adapted to a wide range of business opportunities.

    IMPLEMENTATION:

    What does it take to implement? Maintain?

    Determination and support to develop a comprehensive investigation.

    Were there any organizational considerations?

    Qualified staff members to conduct due diligence and support from finance and legal divisions.

    PERFORMANCE:

    What does it take to sustain the Solution?

    It’s an institutional commitment to do due diligence for each appropriate business opportunity.

    Our Preview section offers you insight into key Solution components. The following screenshots, images, and materials may appear redacted to protect the intellectual property of the Solution.
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    Q: What is the Solution?
    A: The Due Diligence Assessment Guide is a detailed guideline to assist with performing a due diligence initiative for various purposes that may include, but is not limited to, mergers and acquisitions, evaluating vendors and partners, etc. It seeks to guide the users by compiling a list of items that needs to be part of any due diligence process.

    Q: What is the problem this solution addresses?
    A: Given the scope and importance of due diligence activities within The Johns Hopkins Health System, there was an increasing need to standardize the communication around what information is required, and how it may be collected so all parties are aware of the expectations. An effective due diligence is key to informing the decision. As due diligence is often a multi-disciplinary effort, there was a need to develop an internal guideline on acquiring information and the process for performing effective due diligence. This guide allows one to communicate the information required in a efficient and effective way and ensures consistency in the information requested and expected. This guide helped fix the gaping need to bring about standardization and has been applied in many key initiatives.

    Q: Why is Johns Hopkins Medicine well suited to solve this problem?
    A: Johns Hopkins Medicine is a $6.5 billion institution that engages in dozens of business activities annually that require due diligence. We have had to standardize a comprehensive instrument so that we can go about this process efficiently and in a timely manner. This document has evolved over the years and reflects the lessons learned from various due diligence exercises on complex acquisitions and vendor relationships.

    Q: Has this solution been used at Johns Hopkins?
    A: The initial versions have been used since 1996, and current version since 2008. The Due Diligence Assessment Guide has been used in many key initiatives including the creation of a joint venture between the institution and a large technology company and the acquisition of several large hospitals.

    Q: Can I purchase this Solution for more than one of my hospitals?
    A: Yes, this Solution was designed so that it can be implemented at a single hospital or in several hospitals in a health system.

    Q: When will I receive my order?
    A: Upon verification and payment receipt.

    Q: How is the Solution delivered?
    A: You will be able to download the Solution through a secure unique link as soon as your order is verified and your payment is confirmed. You will be contacted when your Solution is available for download.

    Q: What if I have problems with downloading or using the Solution?
    A: We hope that does not happen but if it should, please contact Solutions@MX.com. We will escalate as needed to the Licensor.

    Q: Can I return a Solution?
    A: Yes, your satisfaction is guaranteed. If you are dissatisfied―within 30 days of purchase, email a full refund request to sales@MX.com. Simply provide Solution feedback and discontinue its use. Details

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    Download a solution overview

    Special Offer: Buy this Solution with Johns Hopkins Medicine’s Comprehensive Business Plan Development Guide for only $250 for both Solutions.**

    **Use coupon code JHM2013 on check out to activate this offer.

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