Healthcare Private Equity

Private equity clients rely on our diligence teams to go beyond the numbers to provide business insights and recommendations on risks, planning considerations, and implications for a deal. Whether you’re buying or selling healthcare or life sciences organizations, our experts can help you maximize value.

Services include:

• Commercial Diligence and Market Assessment
• Financial (Quality of Earnings and Quality of Revenue) and Tax Diligence
• Operational Assessment (Clinical, Revenue Cycle, IT, HR, etc.)
• Revenue Cycle Management Diligence
• Compliance Risk Review, including Billing, Medical Necessity and Clinical Coding
• HIPAA Security and Privacy Evaluation
• IT and Cyber Diligence and Data Quality Review

Healthcare clients seeking to grow their business through acquisition or to consolidate previously acquired assets may require support to successfully integrate businesses, achieve synergies and execute cost-reduction opportunities.

Services include:

• Strategic Planning and Initiatives
• Integration/Separation Management Office (“IMO”)
• Integration/Separation Playbooks and Strategic 100 Day Plans
• Revenue Cycle and IT Platform Integration
• Interim Management
• Data Governance and Management
• Business Intelligence and Data and Analytics
• New Operating Model and Business Process Optimization

Clients often face challenges upgrading or integrating financial systems and standardizing processes to achieve leading-practice workflow and adherence to financial reporting standards. We have the expertise and experience to support privately held healthcare clients seeking to optimize highly complex financial systems and operations.

Services include:

• Finance and Accounting Support
• Financial Statement Modeling
• Financial Reporting and Analytics Evaluation
• Capital Planning and Solutions
• Revenue Recognition
• Managed Care Rate and Fee Analysis
• Actuarial Medical Loss Ratio (“MLR”) and Rate Support

Clients can achieve significant value through strategic business transformation. Our industry experts work alongside our clients to design and execute on initiatives that enhance enterprise value.

Services include:

• Operational Assessments
• Performance Transformation
• Workforce Management
• Revenue and Cost Optimization
• Strategic Outsourcing and Vendor Management
• Market Fee Studies and Payer Contracting Evaluation
• Growth Platform Development

PPM organizations face unique challenges in running complex business operations, delivering high-quality patient care and adhering to regulatory requirements. Our experts support PPMs, or their equity sponsors, in achieving profitability despite an increasingly challenging environment and the industry shift towards value-based care.

Services include:

• Physician Compensation Evaluation and Design
• Physician Alignment
• Call Center Optimization
• IT Platform Optimization
• Workforce Management and Governance
• Revenue Cycle Operations and Patient Access Transformation
• Regulatory Compliance Strategy and Planning

Our experts help life sciences private equity and portfolio companies, evaluate, secure and optimize the value of their pharmaceutical, biotech, medical device and in-vitro diagnostic interests. FTI Consulting provides operational expertise and the ability to translate outcomes to financial impacts – most familiar to strategic stakeholders and management – to inform prudent decision-making and drive maximum profitability.

Services include:

• Operational Assessment & Due Diligence
• Cost Optimization
• Commercial Launch Readiness and Product Approval Acceleration
• Clinical Portfolio Rationalization
• Interim Management
• GxP Compliance and Remediation
• Liquidity and Restructuring

Healthcare lenders require specific visibility into vital financial and operational issues that impact their investment. When challenges arise, FTI Consulting can support lenders and respond rapidly to address critical risks. Our experts typically follow a phased approach, focused initially on assessment of the company’s liquidity and cash management reporting and then evaluation of the company’s business plan and operational improvement opportunities.

Services include:

• Liquidity and Cash Management
• Quality of Earnings and Quality of Revenue
• Revenue Recognition and Revenue Cycle Management
• Business Plan Evaluation and Monitoring
• Operational Improvement Plan Development and Execution

Private equity clients in healthcare often grapple with the complexity of regulatory compliance, rapid technological changes, and the challenge of spotting high-potential targets in a crowded market. Our specialized experts in Healthcare Information Technology and Innovation offer customized strategies to navigate regulatory complexities, harness emerging technologies such as AI for improved patient care and efficiency, and facilitate true digital transformation, recognizing technology's pivotal role in operational success.

Services include:

• Digital Transformation Strategy
• IT Due Diligence
• Merger and Post-Acquisition Integration Support
• Commercialization Strategies
• Market Due Diligence
• Technology Implementation and Optimization
• Advisory Services and Subject Matter Expertise
• IT and Operational Alignment Opportunities