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InfuSystem

healthcare
PE-OWNED

A medical device company providing infusion pumps and related services for outpatient therapy.

PE-OWNED

Acquired by Golden Gate Capital2019-07-01

View PE Firm Profile

What Made It Great

“

Specialized infusion therapy equipment and services for oncology patients

What PE Will Likely Do

Predictions

Reduction in nursing staff and replacement with less qualified personnel, leading to decreased quality of infusion therapy monitoring and support for oncology patients

HIGH LIKELIHOODBased on: Golden Gate Capital's track record of cost-cutting, debt loading, and brand consolidation in acquired companies

Sale and leaseback of InfuSystem's specialized infusion equipment, potentially leading to deferred maintenance and older, less reliable devices being used

HIGH LIKELIHOODBased on: The healthcare industry playbook of PE firms, which frequently includes staffing reductions, real estate sale-leasebacks, billing upcoding, and service line cuts

Aggressive upcoding of infusion therapy procedures to maximize reimbursement, without corresponding improvements in actual care quality

HIGH LIKELIHOODBased on: The specialized nature of InfuSystem's infusion therapy equipment and services, which are essential for oncology patients and could be impacted by cost-cutting measures

Elimination of unprofitable but essential services like home infusion or rural clinic support, reducing access to critical infusion therapy for some patients

HIGH LIKELIHOODBased on: The specialized nature of InfuSystem's infusion therapy equipment and services, which are essential for oncology patients and could be impacted by cost-cutting measures

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcement of 'operational efficiency' initiatives, leadership changes, and 'optimization' of the business

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Staffing cuts begin, with reductions in nursing staff and increased use of lower-skilled personnel to provide infusion therapy support

12-24 months

“12 to 24 months months”

Service quality declines as equipment maintenance is deferred, wait times for infusion therapy appointments increase, and essential services are cut

24-36 months

“24 to 36 months months”

Significant issues emerge, including equipment failures, quality of care scandals, and potential closure of InfuSystem's specialized infusion therapy clinics

36+ months

“36+ months months”

Possible bankruptcy or fire sale of InfuSystem to another operator, further disrupting access to critical infusion therapy services for oncology patients

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What You Can Do

Take Action

Actions

  • Closely monitor any changes in the quality or availability of InfuSystem's infusion therapy services, and advocate for the preservation of essential services

  • Be aware of potential equipment reliability issues and request regular maintenance checks on any rented or leased infusion devices

  • Stay informed about any changes in nursing staff or the qualifications of personnel providing infusion therapy support

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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"InfuSystem is now PE-owned. Here's what that means for you."