Solutions
Healthcare Investors
The Department of Justice, the Department of Health and Human Services and the Centers for Medicare and Medicaid Services, as well as state level enforcement, are holding private equity firms and portfolio companies accountable for compliance lapses that lead to violations. These cases are often brought by whistleblowers with inside knowledge of a firm, and frequently involve financial relationships between employees, practices and outside entities.
Protect your firm and your investments by identifying conflicts of interest in portfolio companies.
Conflicts of interest are straightforward to manage – when you know about them.
Compliance issues, which may or may not have been identified in due diligence, are a key area of vulnerability to both PE firms and their portfolio companies. Lack of knowledge due to failure to conduct due diligence is not a viable excuse accepted by the U.S. enforcement agencies that regulate and enforce this area.
Physician practices and non-hospital healthcare groups are more susceptible to conflicts of interest risk than larger organizations because of the low maturity of compliance and risk mitigation efforts. This also makes them attractive targets for regulators and law enforcement.
Discover hidden conflict issues
Most health care organizations have started the process of identifying conflicts, but that process often remains incomplete. This gap in compliance often means that organizations have gathered the necessary information to identify a conflict but remain unaware of its existence.
Monitor conflicts of interest risk
The risk does not go away after the deal closes. Keep tabs on your investment by monitoring employee and supplier interactions.
Due diligence
Quickly identify conflict of interest risk before closing a deal and mandate management of conflicts of interest as part of any deal to reduce your risk.