Providence Service Corporation
Provides home and community-based healthcare services to government programs.
PE-OWNED
Acquired by Bain Capital2018-02-01
What Made It Great
Leading provider of non-emergency medical transportation and home healthcare services
What PE Will Likely Do
Staffing cuts, with fewer registered nurses (RNs) and more licensed practical nurses (LPNs) or nursing aides providing care
Real estate sale-leaseback transactions, leading to potential service cuts or facility closures in less profitable geographic areas
Aggressive billing practices, such as upcoding for higher-reimbursement procedures and diagnoses, leading to potential billing disputes and denials for customers
Elimination of unprofitable but essential services like psychiatric care or rural transportation, reducing access to critical healthcare and transportation options for vulnerable populations
Expected Timeline
“0 to 6 months months”
Announcements of 'optimization' and leadership changes, with little immediate impact on service quality
“6 to 12 months months”
Staffing reductions and service reviews begin, leading to longer wait times and potentially reduced quality of care
“12 to 24 months months”
Significant declines in service quality, with longer wait times, reduced access to specialized services, and potential patient safety issues
“24 to 36 months months”
Major service cuts or facility closures, leading to healthcare and transportation deserts in certain communities, as well as potential quality scandals or patient harm
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Monitor any changes in the availability, quality, and pricing of healthcare and transportation services provided by Providence Service Corporation
Advocate for maintaining essential services and access to care, especially in underserved communities
Report any significant declines in service quality or patient safety issues to regulatory authorities and consumer advocacy groups
Alternatives
Community-focused healthcare
Integrated managed care consortium