CCM/RPM Diligence: Testing Investment Thesis Under Regulatory Uncertainty
Client Type: Middle-market private equity firm
Challenge:
A potential acquisition in chronic care management and remote monitoring showed promise but came with reimbursement and policy risk. The investor needed clarity on sustainability and growth levers before bidding.
Approach:
HBG analyzed market size and growth by payer and provider type, interviewed customers, competitors, and experts, and partnered with a healthcare law firm to assess regulatory outlooks. We built a microeconomic model to simulate profitability under multiple reimbursement scenarios.
Impact:
The analysis revealed that base-case assumptions were overly optimistic and highlighted hidden downside risk. The investor adjusted course and avoided overpaying, while identifying strategic shifts that could make the target viable in future.
Why It Matters:
Policy changes can make or break healthcare investments. HBG brings grounded analysis that turns uncertainty into informed decision-making.
Thumbnail Summary: HBG’s rigorous market and policy analysis helped a private equity firm test its investment thesis, uncover hidden risks, and avoid overpaying for a CCM/RPM platform in a shifting reimbursement landscape.
SEO Meta Description: HBG conducted diligence for a PE firm on CCM and RPM investments, identifying risks and regulatory impacts.
