Concentra
Occupational health and urgent care provider.
PE-OWNED
Acquired by Welsh, Carson, Anderson & Stowe2015-06-01
What Made It Great
Keeping workers healthy through occupational medicine and injury prevention.
What PE Will Likely Do
Concentra will cut staffing levels, replacing registered nurses (RNs) with less-skilled licensed practical nurses (LPNs) or nursing assistants to reduce labor costs
Concentra will sell its clinic real estate and lease it back, extracting equity for investors while potentially increasing rents
Concentra will upcode medical procedures and diagnoses to bill for higher reimbursements from insurance providers
Concentra will eliminate certain unprofitable but essential services like occupational health screenings, injury rehabilitation, or specialized care for high-risk workers
Expected Timeline
“0 to 6 months months”
Concentra will announce 'optimization' initiatives and shuffle leadership, giving the appearance of improving efficiency
“6 to 12 months months”
Staffing cuts will begin, with Concentra citing the need for 'right-sizing' and 'streamlining' operations
“12 to 24 months months”
Patients will notice a decline in service quality, with longer wait times, rushed appointments, and reduced access to specialty services
“24 to 36 months months”
Major issues will emerge, such as the closure of certain clinics or departments, and potential quality scandals due to substandard care
“36+ months months”
Concentra may face financial distress, leading to potential bankruptcy, hospital closures, or a fire sale to another operator
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Monitor for any changes in the quality of care at Concentra clinics, such as longer wait times, reduced access to specialized services, or a perceived decline in the expertise of clinical staff
Be vigilant for any changes in billing practices, such as unexpected charges or the bundling of services that were previously billed separately
Consider alternative healthcare providers, especially for routine occupational health services or urgent care needs, if the quality of care at Concentra declines significantly
Alternatives
Community-focused healthcare
Integrated managed care consortium