“It’s tough to make business decisions without data.” – B. Dan Berger, Economist
A physician-backed practice and a start-up MSO struggled for nearly a year to finalize an Administrative Services Agreement. The challenge was familiar to PE sponsors, MSOs, and health systems:
- Undefined operating expectations
- No feasibility-based pro forma
- Difficulty establishing fair and reasonable MSO compensation
- No mechanism to measure performance post-close
Healthscope was engaged and in five days developed a data-driven operating assessment and compensation opinion aligned with defined MSO responsibilities. Once objective assumptions replaced estimates, negotiations progressed rapidly.
Transactions slow down when operating economics are assumed rather than modeled. For PE firms, MSOs, hospitals, and their advisors, timely decisions require disciplined feasibility analysis—not guesswork. If a transaction or operating initiative is stalled, I’m happy to have a brief, no-obligation discussion on how to move it forward efficiently.