Reduce Investment Risk in Healthcare with an Operational Due Diligence

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Over the last number of years, the Irish healthcare sector has attracted a lot of interest and funding from a range of international investors. In particular the nursing home market has seen a significant consolidation of nursing home operations in Ireland as several specialist European operators entered the Irish market and acquired existing Irish-based groups. In a report published by CBRE (2023), they note that eight of the 15 dominant nursing home group operators in Ireland are internationally owned, four are French-owned, while one each are German, Spanish, Dutch and Chinese-owned respectively.

As demand for nursing homes, and healthcare in general, continues to grow, it is likely that we will continue to see an increase in international investment. In such a highly regulated industry, it is crucial that investors conduct Due Diligence to thoroughly understand the quality and safety of the care provided prior to an investment. This ensures that any potential strategic risks are identified and helps investors make informed decisions.

Once you do invest, you have a legal and social responsibility to ensure that the correct infrastructure and systems are in place to deliver safe, high-quality services. Strong clinical governance, a focus on quality and a drive to improve services is crucial to safeguard your investment and your reputation.

In this blog we discuss the key areas HCI focus on when conducting an Operational Due Diligence and outline why a comprehensive report from an independent provider in healthcare, such as HCI, offers assurance to investors and increases the chance of a successful investment.

What is an Operational Due Diligence?

An Operational Due Diligence of a health or social care organisation is an extensive review of the quality and safety of the service prior to any sort of investment or business transaction. It focuses on the operational aspect of the service, to identify the levels of compliance with applicable regulations, the Governance Systems in place and any red flags that may result in enforcement action from a regulatory body. A thorough assessment consists of document reviews, onsite process observations and staff interviews.

Considerations for Conducting an Effective Operational Due Diligence

At HCI we have conducted many Operational Due Diligence for healthcare investors and below are five of the key areas we recommend focusing on to ensure that you get a real understanding of the quality and safety of the services you are looking to invest in.

Once the review is completed, a detailed report should be developed outlining the findings and highlighting any areas of potential concern for the investment.

How can HCI help?

Conducing an effective Operational Due Diligence requires quality and safety experience and regulatory knowledge to really understand the quality of the care being provided. HCI is an independent and trusted partner in healthcare. We have both the experience and knowledge to ensure you get a comprehensive understanding of the quality and safety of the service.

Following an extensive review by HCI, of the organisation’s Governance and Quality and Safety Management System (QSMS), HCI will provide you with a set of Operational Due Diligence Reports. The reports identify areas of good practice and provide a detailed evaluation of the areas of regulatory non-compliance. For each of the regulatory non-compliances, HCI will allocate a risk rating flag system to reflect how the identified issues may impact on any potential investment. As part of this, a concise red flag report is provided to clearly detail the main areas of concern identified as part of the review. This level of detail allows you to clearly understand the potential strategic risks and make an informed decision.

Why work with HCI?


The Operational Due Diligence process is not one to be overlooked when investing in healthcare. It is an essential step to ensuring a successful investment for both the investor, staff and service users.

HCI works with healthcare investors to conduct Operational Due Diligence. This is a highly valued component of the acquisition process, providing investors with a clear understanding of the governance systems in place, the quality and safety of the service and any potential regulatory compliance issues. We can also support investors in ensuring that there is ongoing effective clinical oversight of the service along with well-developed Quality and Safety Management Systems.

For more information contact HCI at 01 629 2559 or

Contact Us

For more information contact or Phone +353 (0)1 6292559.