Private Equity Investment Thesis Research: The Evolution of the Revenue Cycle Management Industry

10-day turnaround to deliver robust insights on the revenue cycle industry

PECo* sought to test an investment hypothesis and needed deep research and objective insight into the growth strategies and evolutions of four leading RCM providers. We used our deep expertise in the RCM space and analytical storytelling to craft a compelling timeline narrative of each RCM provider’s growth individually, comparatively, and in full industry context. This provided PECo with the independent validation it needed to take the next steps in its targeting and acquisition activities.

Specifically, they were aiming to lay out the evolution of these providers and their growth performance since founding. They had a theory around the growth drivers and scaling of these providers and needed expert support with strong research capabilities and experience in the healthcare space to help substantiate this hypothesis.

Key questions we addressed were:

1. Has it been difficult for these firms to acquire new customers in the form of third-party hospitals?

2. In any effort to acquire new customers and scale, what challenges have these firms faced in the market, and how have they responded to them?

We researched and analyzed the firms’ histories of hiring, leadership turnover, operational misses and failures, and legal issues. Our extensive prior experience in managing RCM projects allowed us to not just report on the companies’ performance, but to provide deep and meaningful insight into the complexities of the issues affecting their growth trajectories and their potential for future scaling.

As a result of our in-depth expert research, PECo was able to confidently make its next investment decision in the RCM space.

*While we've changed client names, the results are real.