Reform Drives Private Equity Opportunities in Payer Services

June 2, 2014

Sweeping changes in insurance regulation, increasingly constrained access, growing need for consumer-focused services, and escalating costs are redefining the payer business. Developing the right mix of front, middle, and back office capabilities has become critical post-reform and created an attractive area of potential investment for private equity.

LLR’s operating partner Brett Moraski authored an article for Healthcare Payer News on the reasons why payer services is attracting private equity capital, including:

-Need to communicate directly with 8 million new members of the public exchange

-Growth in affordable, alternative site care options

-Increasing vertical integration between payers and retail care

-Outsourcing of customer engagement services like marketing, enrollment and analytics

-Focus on prevention and wellness initiatives

To read the full article, click here.