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A Consistent Care Model: Bridging the Gap Between Private Equity and Healthcare
- The intersection of private equity (PE) and healthcare presents unique opportunities and challenges, but operational consistency can bridge the gap between the two.
- Incorporating a consistent care model helps in enhancing financial performance while ensuring individualized patient care.
- Studies have correlated consistent care models with reduced hospital readmission rates and improved management of chronic diseases.
- PE firms looking to expand existing healthcare platforms may face resistance from physician-owned businesses where standardization is not the norm.
- External operational experts are often called upon to help achieve consistent margins and EBITDA across different locations.
- Operational transformations or operating models focus on identifying and implementing best practices consistently to bridge the gap between financial and clinical expertise.
- Improving operational efficiency through standardization of routine tasks enables healthcare providers to redirect their focus towards individualized patient care.
- Standardization framework involves creating operational archetypes or consistency within distinct groups tailored to specific clinic clusters.
- Bridging the gap between private equity and healthcare through a consistent care model aligns financial objectives with patient care excellence and fosters operational efficiency.
- Adopting consistent care model across a healthcare portfolio enhances value creation and allows for scalability across various sectors by focusing on operational excellence.
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