Healthcare private equity ownership brought Americans surprise medical billing. What's next for unsuspecting citizens? Private equity underwriters (PEU) made the news recently for wound care and kidney disease.
Wound Care
A Carlyle Group affiliate recently expanded into the wound care arena.
Tissue Analytics, an automated tech-savvy wound and predictive analytics company with skin imaging capabilities, has been acquired by software solution provider for the medical industry, Net Health.
Following the acquisition’s closure, Tissue Analytics’ AI applications will be combined with Net Health’s existing electronic health records system, WoundExpert, so that clients of the merged entity will be able to upload wound images and measurements digitally.
In 2017 The Carlyle Group and growth equity investor Level Equity, along with Net Health management, acquired Net Health, which offers cloud-based clinical documentation, practice management and billing solutions for specialized outpatient providers.
At the time of the initial Net Health deal Carlyle's press release stated:
Net Health serves healthcare professionals in 98% of the largest hospital chains as well as private practices around the country—driving workflow in more than 3,000 urgent care, wound care, physical therapy, speech and language therapy, occupational therapy, occupational medicine, employee health, and workplace medicine facilities each dayIn July 2019 Net Health bought out Optima Healthcare Solutions:
Outpatient software provider Net Health on Tuesday announced a plan to acquire Optima Healthcare Solutions, expanding its presence into the post-acute marketplace. The Pittsburgh-based Net Health positioned the move as a strategic push to extend its reach into Optima’s base of contract therapy companies, skilled nursing facilities, senior living communities, and hospices.Skilled nursing facilities and senior living communities have been hard hit by the coronavirus pandemic. 42% of all COVID-19 deaths have taken place in nursing homes and assisted living facilities.
Kidney Disease
Floridians with Humana health insurance who have kidney disease will have their care managed by Healthmap, a private equity affiliate. New York based PEU Windrose Health Investments took an $85 million stake in Healthmap last year.
Humana CEO Bruce Broussard has a strong private equity background, having served as U.S. Oncology's CEO under PEU Welsh, Carson, Anderson & Stowe. Broussard partnered with WCAS and TPG Capital in a July 2018 deal for Kindred at Home, a national home health and hospice company. He has since expanded his collaboration with his former employer around Humana primary care sites.
The human kidney removes toxins from the body. Private equity is toxic to America's healthcare system. Greed and the pursuit of massive profits distort behavior. I expect the PEU boys to inflict more grievous wounds on our healthcare system as they suck out cash for themselves and investors. That's who they truly serve.
