2 CaP News

25-03-2025

Which leader is most likely to favour for-profit healthcare? Mark Carney

“American-style” healthcare system in Canada the phrase is used by Liberals to entice Canadians – particularly aged 55 and up – to reject Conservatives at the polls in the upcoming election.

When it comes to for-profit healthcare – Mark Carney seems to be fully invested. The company he worked for and had/has shares in is very bullish on the profit potential of increased need of seniors for essential health services.

Who believes and banks on growth in private for-profit healthcare? Mark Carney.

Who sees private for-profit healthcare as a wealth generator for the elite? Mark Carney

Who makes money from private for-profit healthcare? Mark Carney

Who will ship jobs overseas to make more money? Mark Carney

It is past time that journalists do their jobs to advise the Canadian public on the veracity of Liberal sound-bites.

Everise – a company that Brookfied acquired in late 2020 – the same time as Carney joined the company.

Strategic Importance to Brookfield

• Sector Fit: Everise aligns with Brookfield Business Partners’ focus on business services and industrials, particularly in high-growth areas like healthcare outsourcing, which benefits from aging populations and rising demand for cost-efficient solutions.
• Capital Deployment: Brookfield has used its operational expertise and capital to scale Everise, consistent with its playbook of enhancing cash-flow-generating businesses.
• Partnerships: The 2023 deal with Warburg Pincus brought additional capital and expertise, allowing Everise to accelerate growth while Brookfield maintained strategic control.

Key Services for For-Profit Healthcare

1. Revenue Cycle Management (RCM)
   1. What: Claims processing, billing, denial management, and insurance verification.
   1. For-Profit Impact: For-profit hospitals (e.g., HCA Healthcare) and insurers (e.g., Anthem, Cigna) aim to optimize cash flow and reduce unpaid claims. Everise’s offshore teams and automation tools cut processing times and costs, directly boosting profit margins.
   1. Example: Handling denials for a private hospital chain can recover millions in lost revenue annually.
2. Patient Acquisition and Retention
   1. What: Patient onboarding, appointment scheduling, telehealth support, and satisfaction follow-ups.
   1. For-Profit Impact: Private healthcare providers (e.g., urgent care chains like Concentra) compete for patients as customers. Everise’s multilingual, 24/7 support enhances patient experience, driving repeat business and referrals—key to profitability.
   1. Example: Supporting a for-profit telehealth platform to manage patient inquiries increases user retention.
3. Member Services for Commercial Insurers
   1. What: Enrollment assistance, benefits explanation, and claims support for policyholders.
   1. For-Profit Impact: Private insurers prioritize customer satisfaction to retain members and reduce churn. Everise’s AI-driven chatbots and human agents handle high volumes cost-effectively, freeing up insurer resources for premium growth.
   1. Example: Managing open enrollment for a for-profit insurer like Humana reduces operational overhead. 

Since Brookfield’s majority acquisition in 2020:

• Growth: Everise doubled its valuation to $1 billion by 2023, partly due to healthcare expansion. The minority stake sale to Warburg Pincus in December 2023 provided capital to scale healthcare offerings further.
• Investment: Brookfield has funded tech upgrades and workforce expansion, positioning Everise to capture more healthcare contracts.
• Strategy: Aligns with Brookfield’s goal of owning cash-flow-positive businesses in resilient sectors like healthcare, which is less cyclical than other industries.

Healthcare Market Context

• Demand Drivers:
  • Aging populations (e.g., U.S. baby boomers) increase healthcare utilization.
  • Rising costs push providers and payers to outsource non-core functions.
  • Shift to digital health (telemedicine, EHRs) requires specialized support.

1. Cost Reduction for Profit Maximization

• How: Everise’s global delivery centers (Philippines, Guatemala, Malaysia) offer labor costs 40-60% lower than U.S.-based staff. Services like claims processing, billing, and data entry offload expensive tasks from for-profit hospitals (e.g., Tenet Healthcare) and insurers (e.g., UnitedHealthcare).
• Impact: A private hospital outsourcing revenue cycle management to Everise might save $5-10 million annually, boosting margins in a competitive market.
• Trend Fit: As for-profit firms acquire more facilities (e.g., PE-backed hospital deals doubled from 2018-2023), they need scalable cost solutions—Everise delivers.

2. Scaling Operations for Growth

• How: Everise’s 20,000+ workforce and tech platforms (AI chatbots, RPA) allow rapid scaling to support for-profit expansion, such as new clinic openings or insurance membership surges.
• Impact: A for-profit telehealth firm (e.g., Amwell) can double its user base without hiring thousands of in-house support staff, relying on Everise for patient onboarding and tech support.
• Trend Fit: Health tech startups, a hotbed of for-profit activity ($50 billion in VC funding in 2023), depend on outsourcing to grow fast without bloating costs.

3. Enhancing Patient Experience for Competitive Edge

• How: Everise provides 24/7, multilingual patient support (scheduling, follow-ups) and member services for insurers, improving satisfaction and retention.
• Impact: A for-profit urgent care chain (e.g., Concentra) using Everise’s omnichannel CX might see a 10-15% increase in patient return rates, driving revenue.
• Trend Fit: For-profit providers compete on service quality to attract paying patients—Everise’s tech-enhanced support gives them an advantage.

Brookfield’s Strategic Boost

Brookfield Business Partners’ majority ownership (since 2020) turbocharges Everise’s alignment with for-profit healthcare growth:

• Capital Infusion: Brookfield’s funding (e.g., post-2023 Warburg Pincus deal valuing Everise at $1 billion) has expanded its workforce and tech, enabling it to handle larger for-profit contracts.
• Profit Focus: Brookfield’s private equity playbook emphasizes cash-flow growth—Everise targets for-profit clients with stable, recurring outsourcing needs.
• Market Timing: The 2020 acquisition coincided with a for-profit healthcare surge (e.g., telehealth spiked during COVID), and Brookfield has positioned Everise to ride this wave.

Is Everise in Canada yet? Yes