How understanding HCO ownership structures can sharpen biopharma’s engagement strategy

In today’s complex healthcare landscape, understanding who owns a healthcare organization (HCO) is more than a matter of curiosity—it’s a strategic imperative. The type of ownership structure for an HCO can inform everything from decision-making hierarchies to financial priorities, and ultimately, how receptive the organization might be to potential therapies and vaccines for the patients they treat.

To help inform your account-based engagement strategies, Provider 360 ReadyData™ from McKesson Compile™ includes organizational attributes that specify an HCO’s ownership and affiliations. And, as part of our continuous investments in product updates and feature enhancements, we’re excited to announce a newly launched data attribute that’s included in Provider 360 ReadyData: private equity ownership.

Why Ownership Matters

Ownership models influence how hospitals and health systems operate, what they prioritize, and how they evaluate strategic partnerships. For biopharma companies, tailoring their engagement strategy to align with these priorities can help bring therapies to market for the patients who need them.

Let’s break down the major types of owners and how they can inform an engagement strategy:

• For-Profit
  • Owned by publicly traded or privately held corporations, these institutions are typically driven by financial returns and shareholder accountability. They often prioritize cost-effectiveness and revenue-generating opportunities.
  • For-profit owner types include private equity (PE) firms, investor-owned multi-hospital systems, and smaller facilities owned by local investors.
  • Engagement Tip: Emphasize the financial value of your offerings. Highlight cost savings, revenue potential, and market share impact.
    
    
• Non-Profit
  • These organizations focus on patient care, community service, and mission fulfillment.
  • Non-profit HCOs are typically affiliated with academic institutions or charitable groups.
  • Engagement Tip: Showcase how your therapies improve health outcomes and support community health goals.
    
    
• Government
  • Funded by taxpayers and accountable to public agencies, these hospitals prioritize public health, equitable access, and efficient use of public funds.
  • Engagement Tip: Demonstrate how your products align with public health objectives and deliver measurable community benefits.

The Rise of Private Equity in Healthcare

Private equity ownership is reshaping the U.S. healthcare landscape. Over the past decade, PE firms have invested more than $1 trillion in healthcare, targeting fragmented markets with high demand and predictable cash flow. Their influence is especially strong in:

• Physician practices
• Behavioral health
• Dental care
• Outpatient services (e.g., ambulatory surgery center, urgent care)
• Home health & hospice
• Hospitals and integrated delivery networks (IDNs)
  
  

PE-owned hospitals often exhibit distinct operational characteristics: high debt from leveraged buyouts, short-term investment horizons (typically 3–7 years), and a laser focus on profitability. These traits can lead to increased pricing, reduced service availability, and concerns about care quality.

What This Means for Biopharma

Engaging with PE-owned HCOs requires a different playbook. Successful brand teams are already adapting by:

• Targeting financial decision-makers within the PE firm, not just clinical leaders.
• Focusing on ROI, using data to demonstrate cost-effectiveness and value-based outcomes.
• Offering operational support and competitive pricing to address cost and efficiency pressures.
• Adapting to fast timelines, with flexible contracts and quick-turn value demonstrations.

Introducing: Private Equity Ownership in Provider 360 ReadyData

To support these evolving needs, we’ve added private equity ownership as a new organizational attribute to Provider 360 ReadyData. This feature maps over 400 PE-owned acute care hospitals to their respective investors and will help empower your teams to:

• Tailor engagement strategies to align with financial priorities of PE-owned hospitals.
• Target the right decision-makers within PE firms.
• Enhance negotiation strategies with data-driven, mutually beneficial proposals.
• Align with short-term investment horizons, demonstrating value of your therapy within 3–7 years.

Enrich your strategic planning with critical HCO ownership insights

Discover how our new HCO ownership attribute can transform your engagement strategy. Contact us to see the difference for yourself.