All my healthcare folks, have a sell-side deal where the company wants to proforma a revenue adj bc they negotiated an increase in payor collection rates specifically for medicaid and medicare. We are seeing a decent increase in collections/revenue bc of this in YTD. Would this be too aggressive of an adjustment? Not a healthcare person but I’m assuming collection rates can fluctuate Y-oY. Seller is saying these negotiated rates should hold up for the next 3 years. Thoughts?

like
Posting as :
works at
You are currently posting as works at

Are you talking reimbursement rates? If that’s the case I have seen adjustments for this run through as diligence and PF adjustments. If you have the data to reliably calculate a revenue uplift across the LTM I’d go ahead and post it as a diligence adjustment but if you don’t have great data I would lean towards a PF. This is likely to be heavily scrutinized by a buy-side team so you want to make sure your calculation is solid if you are going to include this in EBITDA. But overall, I see rate increase adjustments quite a bit

like

This seems fairly reasonable if those rates are contractually locked in. But with any pro forma, then that begs the question "what else in your business is contractually locked in that we AREN'T adjusting for?", particularly on the cost side

like

Medicare/Medicaid rates pretty much change yearly. So this could be seen as normal-course. I’ll let someone more senior chime in too, but I think the argument to propose an adjustment for those payors specifically would be that the increases are at an above normal amount.

So if rates generally increase by ~3% each year due to inflation (as an example) then you probably should only propose for an adjustment for rates that increased above that amount.

But I would say generally rate adjustments are common, but expect some push-back from the buy side.

Related Posts

Wondering if anyone can give insight as to what salary range is for an insurance compliance role as an IC3 or similar?

like

Hello, I got an offer of 32 LPA from CBA but the variable is 5 L. I want to know the % of variable payout per year? Also, how is the work culture and what are the perks and benefits of working over there?

like

Is it realistic to go solo in the healthcare law space? Or do boutique firms have a hold on the market?

I’m 6 months pregnant and scheduled a 30 minute meeting to chat with my HR rep to talk about our parental leave benefits (specifically how to navigate taking additional, unpaid time)…. She declined the meeting and directed me to review the policy documentation online and email her with any specific questions I have. Is that normal? Feeling a bit unsupported but also not trying to overreact

like

Hi fishes,
Want some feedback for Employees Assistant Program (EAP) by Capgemini which provides facilities to connect with Therapist.
Actually I am going through some tough times(going through a divorce), want to connect to EAP to discuss my mental health issues.
I had connected once and they say that the conversations are strictly confidential.
Just wanted to know do they really keeps stuff confidential or can they inform my Manager regarding the personal conversations.

like

Hello all

Could you please let me know the insurance coverage in Lti.

Would like to know coverage per person and is there option for floater against complete family.

Thanks in advance

like

If anyone is interested in investing in crypto, I’m running a kickback campaign on Vauld, where both, you and I can reap benefits. You could also FD your crypto investments at interest rates as high as 12.68% for a few tokens.

Comment here or DM me personally if interested to talk further. Note that this crash is a great opportunity to enter. 😊

I want out of the Insurance industry looking to go into tech as a Data Analysis or Project Manager

like

At EY GDS,

Almost always is a good rating or it is given to all generally in practice?

What are the advantages and benefits of having gold standard rating?


TIA

like

Getting life insurance so they drug tested me. Now they want me to fill out a form that basically asks me to certify if I’ve EVER done any of these drugs. What the? Who hasn’t EVER? What happens if I say never did? Idk my results from the drug test, maybe I smoked a bowl in the last few weeks, can’t say for sure. How does this work?

likehelpful

I have been working in healthcare clinics and health techs for a few years now. I’m an independent consultant. Bust, a friend of mine referred me to a big bank job. The role is of data governance manager. What should I know for the interview, or how can I prepare for it? Any thoughts? They told me I don’t need financial background. Data is data, but they wanted to know metadata management and how do I build frameworks/implement enterprise systems.

like

Do big4 directors retire with the same benefits as partner or some other?

funnylike

Best options (companies that provide) term life insurance outside of work? Please advise - looking to get this done this week for wife and I

like

Hi Fishes, I cleared an AVP role in JP, Hyderabad. I'm currently at 22 LPA and JP is offering a 45% on this. I have 17 years of experience and 13 years association with Deloitte. Should I consider this offer. Deloitte has great flexibility, my last annual bonus was 3.2L. Does JPMC has flexibility and what other benefits do they offer?

like

Hello I just started my first job (I’m 22) and I need to set up a 401k for matching with my company. I’m really confused how this works because I want to try to hit the IRS maximum of $19,500 for Roth contributions this year. Maybe it’s too late in the year now, but it’s asking me to pick my desired contribution % per pay period, but I’m not sure how much to do because it says it’ll kick in 1-2 pay cycles and I don’t even know when the next pay check comes yet. Any tips would be great

like

Hi All. Question regarding HDPI (GSC Bangalore). Can someone shed light on the relocation benefits external hires get at GCB 6? Also, are these fixed or can we negotiate on these as well? I'd appreciate an urgent response if possible.

like

Hey there, new and curious fish. Are you considering a position in pharma? Worried about how creative you can be? Thinking if the salary is worth it? Ask your questions about entering the world of healthcare advertising here and we’ll answer.

likefunny

Hey guys,

is it safe to move to healthcare organization which is established in India only 2 years ago, but in US it was established around 160+ years ago, keeping in mind on recession and job security?

Please help me on this!!!


Fractal Infosys Tata Consultancy IBM Wipro Nagarro

like

What's the best single site for business of healthcare news, now and in general?

like

Any consultants from Deloitte who can help to staff in a healthcare project? I’ve worked with healthcare clients for 10 years and relatively new to the firm.

like

More Posts

I have received pwc ac documentation email on 7th but still did not got any update...please advise .. Thank you

PPR or Reg?

Hi, I’m currently working in Business consulting at EY India. I am keen to practice consulting in the Middle East. Does anyone know which mgmt consulting firms offer visa sponsorships and the best way to reach out to them?
Thanks in advance!

Koi Michigan waale Punjabi hai ithe kya?

Hi guys, i working in a project from last 5 months and didn't like the project and team.
Can i ask for a project change??? Is there any minimum time i need to spend as per thoughtwork policy?

like

Have you used go education or other screen capture software?

Happy week of Christmas! How are we doing with last minute shopping?! I haven’t started 🤔

like
like

TFW speaking with high school friends: misunderstood as shit

like

Is it ok to switch to Big data tech stack like Hadoop, Hive, Python after 7 years of experience from .Net technologies ? Which of the two field is good for long term perspective.

like

iOS developer with 4+years experience please let me know if any of the company have requirements

like

Hi All,

I'm facing error as "employee ID is not available in BGSW user list" while registering in associate arena app.

Please let me know how to fix this error.

Thanks in Advance.

like

Was at an event recently. Seems like advertising really only cares about diversity as it applies to white women. I think this industry wants to stay white.

like

How is EY SPLIT going to affect individuals ?

like

Do MBB pay a referral bonus if your referral gets hired?

like

Creamy Corn Chowder

Post Photo
likeuplifting

Can someone explain what makes The Island by Three so great?

Any recruiters in the Charleston, SC area? I'm trying to quietly find another PI firm. Please DM me if so.

like
like

Where to go as an Art Director if you no longer wish to work at an Ad Agency? Ideas?

like

Additional Posts in Transaction Services, M&A, Deal Advisory

Has anyone left big 4 or other PA firms tax transaction service groups for industry (or know of anyone)? What was the role and salary bump, how are annual bonuses/raises in industry, what is a typical work week (hours) like? I don’t think I can take this always on just to stay afloat life much longer. For context I am considered a high performer, am near the top of the salary band at my level and have a great supporting network at Deloitte. It’s just not worth it to have zero personal life.

like

PwC CMAAS or A&M?

like

Anyone want to refer me to an EY Transaction Diligence position?

like
like

I’m moving to a new state and know absolutely no one there. How do I go about finding a roommate?

like

how much harder is banking then valuation?

likefunny

Interviewed for 5.5 hours today at a boutique IB today. Base comp is a slight bump. 14 mos in FDD @ PwC who will make senior this CRT - love the role but want to see more of the transaction besides TBs and TB detail. Comp isn’t a huge bump but the IB seems to have a good culture. 20 people. I really am struggling. I worried about FDD golden handcuffs with limited exit ops. Please advise!!! How should I navigate this and assess it from an unbiased perspective. Thx!

like

Does anyone have any experience or know of someone who went from FDD to PE operations (think Cerberus COAC). Would be great to hear any insights or thoughts on the jump and transition.

like

Anyone at M&A strategy at KPMG willing to connect?

like

How many hours would you work when you have your 2 weeks in? Would you work weekends?

like

Differences between Big 4 FDD versus mid tier PA firms or HL/A&M/D&P? Big 4 typically gets the largest deals, Mid tier PA and HL/A&M/D&P doesn’t have offshore help, would these statements be accurate?
What else? Anyone have any specific insights that wouldn’t be found via the search button?

likehelpful

Anyone know what hours are like in A&M’s GTA (deal analytics) group is like? Is it as bad as FDD?

like

How long were you a senior in FDD before things started to click? Really enjoying everything so far but feel like I am behind my peers. Been about 7 months now.

like

Gonna be starting in FDD in a few weeks, coming out of Audit with no deals background. Are there classes or courses I can take to prepare for the switch? Any tips? Don’t mind paying someone to tutor me on the side as well. Just wanna be prepared as much as I can be.

like

Are global sabbaticals possible in TAS (from US to UK)

like

Anyone in tax m&a left for industry? What role did you take and what was the pay like? JD here but interested in both JD and CPA’s experiences.

like

Is it worth considering a career in Restructuring Consulting in the long term given that their work can be quite cyclical and hinges on the spectrum of the economy.
Or have I misunderstood this? Are the teams always busy with projects?

like

Recommendations for websites or newsletters to subscribe to, to stay informed on anything finance related or deals related? Any podcasts too. Thank you

likehelpful

Anyone gone through the CFI’s FMVA certification program? Is it worth it for FDD?

like

Has anyone here considered exiting for a PE Fund of Funds?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal