According to digital newsletter RevCycleIntelligence:
Healthcare private equity activity remained strong despite rising interest rates, high inflation, and other market factors.
During the first half of 2022, healthcare private equity was as strong in 2021 in terms of deal volume.
Deep-pocketed firms plowed $206 billion into more than 1,400 healthcare acquisitions, according to industry tracker PitchBook.
Seeking quick returns, these investors are backing eye care clinics, dental management chains, physician practices, hospices, pet care providers, and thousands of other companies that render medical care nearly from cradle to grave.
Private equity-backed groups have even set up special “obstetric emergency departments” at some hospitals, which can charge expectant mothers hundreds of dollars extra for routine perinatal care.
All of this money is bringing change to the large healthcare sector: When innovators receive investment they take on partners, stakeholders in the organization; in addition to independent contractors and vendors, the growing organization faces financial risk from this class alleging waste of management, waste of assets, or mismanagement.
Injured patients are turning to the courts to press allegations of misconduct or other improper business dealings. The lawsuits allege that some private equity firms, or companies they invested in, have boosted the bottom line by violating federal false claims and anti-kickback laws or through other profit-boosting strategies that could harm patients.
“Their model is to deliver short-term financial goals and in order to do that you have to cut corners,” said Mary Inman, an attorney who represents whistleblowers.
These lawsuits against the organization are protected by a directors and officers liability policy.
Directors & Officers (D&O) Liability insurance is designed to protect the people who serve as directors or officers of a company from personal losses if they are sued by the organization's employees, vendors, customers, or other parties.
The Doctors Insurance Agency has been involved in private equity healthcare organization risk management and the associated liability insurance since 1989.
When we think of private equity and healthcare, we think of the two most common and important liability insurance policies: Directors and Officers Insurance and Healthcare Professional Liability Insurance.
In order to properly protect the growing healthcare organization, the Doctors Insurance Agency collaborates with professionals.
We believe it is that collaboration that is integral to delivering safe, successful, and satisfying care.
The Doctors Insurance Agency is focused on finding the right liability insurance policy for your healthcare business as we represent 25 healthcare liability insurance companies.
The Doctors Insurance Agency will find you the best fit for your aesthetic or clinical organization.
Working with consulting companies like Medical Advantage Group, we are committed to finding you ‘Solutions as Unique as Your Specialist Group’.
The Medical Advantage Group is a team of experienced digital and clinical healthcare consultants/experts.
They have expert consultants with experience assisting specialty groups connect with private equity investors. They also have tools to assist with practice administration.
Medical Advantage Group Solutions:
Medical Advantage is dedicated to helping providers, health plans, delivery systems, and medical groups reduce costs and increase quality of care.
We achieve this through a range of advisory and technology solutions, delivered both virtually and in-person, aimed at improving physician performance, driving better patient outcomes, and increasing profitability.
In addition to large healthcare organizations and private equity investors, there are smaller entrepreneurs medical doctors and advanced practice clinicians who start with the simple idea that they can make a difference and develop their own side business.
The Medical Advantage and the Doctors Insurance Agency work together to support a specific niche within this healthcare entrepreneurial space:
During the 1st year of consolidation and acquisition, it is important of course to manage expenses.
The Doctors Insurance Agency works with consolidated specialty medical groups to find the right size of deductible/self-insured retentions to reduce premiums.
Working with the Medical Advantage group, we work to partner your growing private practice- aesthetic or clinical. The focus is to deliver better patient outcomes, satisfaction, and practice profitability.