M&A is surging in health care. Les Williams weighs in on the risks and rewards of industry mergers and acquisitions.

Below is a summary. Additional details are outlined in the full article, written and published by Risk & Insurance. Read Full Article

“Health care is like the perfect storm of complex billing, complex staffing, complex operations,” said Les Williams, co-founder and chief revenue officer at Risk Cooperative, in an interview for a piece written by Autumn Demberger at Risk & Insurance®.

This piece is a natural follow up to an article he authored on the topic of changes in the health care industry after Anthem rebranded as ElevanceHealth. It analyzes the trend towards new M&A deals in health care over the last few years.

Key takeaways:

What’s Driving Deals | After the unprecedented challenges of COVID, health care organizations are looking to formalize operational efficiencies, expand services, and improve financial viability. And they’re turning to M&As to help them solve these problems.

Who’s Behind the Handshake | The potential for profitability has attracted private equity firms to the health care sector. And, in some cases, their ability to provide a much needed cash infusion into struggling organizations has allowed facilities to continue serving patients.

Risk & Reward | While economies of scale help reduce operational costs and provide communities with more local treatment options, mistakes made when two systems merge can have life-or-death consequences.

Thoughts for the Industry to Ponder | Could we see more exclusive health insurance + facility partnerships, like what Kaiser has modeled?

So You Want to Make a Deal | Due diligence can make or break a proposed deal. It’s imperative that your risk team is involved early to manage risks and liabilities.

Contact us today   Learn how you can safeguard your organization’s customers, resources, and future with a 30-minute consultation.

Stay informed. Our Insights Newsletter highlights the latest news and analysis on global strategy, policy and risk.  Subscribe to Insights


Read the full article on Risk & Insurance