In the battle over healthcare costs, private equity plays both sides
Insurance companies have long accused privately owned hospitals and medical associations of exorbitant billing that drives up healthcare costs. But a private equity-backed tool is helping insurers make billions of dollars and shift costs to patients.The tool, Data iSight, is the flagship offering of a cost-containment company called MultiPlan that has attracted continued private equity investment since it positioned itself as a central player in the lucrative field of medical payments. Today Hellman & Friedman, the California-based private equity giant, and the Saudi Arabian government's sovereign wealth fund are among the company's largest investors.The evolution of Data iSight, which recommends the amount to pay for each medical bill, is an untold chapter in the story of privat...