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Premise Health

healthcare
PE-OWNED

Workplace health services provider for employers.

PE-OWNED

Acquired by Advent International2018-02-01

View PE Firm Profile

What Made It Great

On-site healthcare services reducing employer costs and improving employee health.

What PE Will Likely Do

Reduction in the number of on-site healthcare providers, leading to longer wait times and less personalized care for employees

HIGH LIKELIHOODBased on: Advent International's track record of cost-cutting and debt loading in acquired companies

Shift towards lower-cost, less-qualified staff such as licensed practical nurses (LPNs) instead of registered nurses (RNs)

HIGH LIKELIHOODBased on: The healthcare industry playbook commonly used by private equity firms, which focuses on reducing staffing, asset monetization, and revenue maximization

Potential sale and leaseback of Premise Health's clinic facilities, leading to higher rental costs that may be passed on to employers

HIGH LIKELIHOODBased on: The potential for Premise Health's focus on preventive and workplace-based healthcare to be seen as less profitable than other healthcare services

Aggressive billing practices to maximize reimbursements, potentially resulting in higher out-of-pocket costs for employees

HIGH LIKELIHOODBased on: The potential for Premise Health's focus on preventive and workplace-based healthcare to be seen as less profitable than other healthcare services

Elimination of less profitable but essential services like mental health or wellness programs

HIGH LIKELIHOODBased on: The potential for Premise Health's focus on preventive and workplace-based healthcare to be seen as less profitable than other healthcare services

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Announcement of 'optimization' initiatives, leadership changes, and plans for 'efficiency' improvements

6-12 monthsYOU ARE HERE

6 to 12 months months

Initial staffing cuts and service reviews, with some noticeable decline in appointment availability and care quality

12-24 months

12 to 24 months months

Significant reduction in on-site healthcare providers, longer wait times, and reduced scope of services offered

24-36 months

24 to 36 months months

Potential for major quality issues, such as clinic closures or high-profile patient safety incidents

36+ months

36+ months months

Possibility of bankruptcy, hospital closures, or a fire sale to another operator, further disrupting healthcare services for employees

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Closely monitor any changes in the availability, quality, and cost of healthcare services provided by Premise Health at your workplace

  • Advocate for your employer to maintain a high level of on-site healthcare resources and services, even if they come at a higher cost

  • Be prepared to seek alternative healthcare providers if the quality of Premise Health's services declines significantly

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

Share this company's PE status

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