Diligence
Before investment committee: where a target’s commercial rates sit against its market, and what that means for the plan.
Value creation
After close: which payer contracts to revisit first, and what the market will support.
What you receive
Rate tear sheet
Provider group A · Orthopaedics · Metro area X
Illustrative · synthetic data
| Payer | Rate vs. market median (% of Medicare) | Target | Median | Percentile |
|---|---|---|---|---|
| Payer 1 | 118% | 124% | 44th | |
| Payer 2 | 96% | 122% | 21th | |
| Payer 3 | 141% | 131% | 63th | |
| Payer 4 | 104% | 119% | 29th | |
| Payer 5 | 127% | 126% | 52th |
- Below the market median with three of five payers.
- Largest gap: Payer 2, about 21% under its market median.
- Review first: Payer 2 and Payer 4.
Questions deal teams bring
- Is this target paid above or below its market?
- Its position with each payer, against the market median and the range around it.
- Which payers drive the gap?
- The contracts furthest from market, ranked, so the conversation starts in the right place.
- How do the assets in a roll-up compare?
- Each practice side by side on the same basis, so outliers are visible before integration.
