“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.
