On this episode of The Corner Series, McGuireWoods’ Geoff Cockrell invites Alessio Baraldi, managing director at Albaron Partners, to discuss value creation in healthcare provider services. Alessio provides insight into the equity structures that work best for his portfolios and how he approaches compensation to keep everyone aligned.

“In an environment where there is quite a bit of wage inflation, having a unified system where the management team is able to manage expenses at the center level without relying on the doctors making those calls, has been quite helpful,” Alessio says.

Value creation from a growth strategy can be quite effective, and firms use various approaches such as de novo or acquisitions. Alessio and Albaron Partners prefer a mixture of both to add the most value to their partners. Integrations and centralization also provide value to a portfolio company. Being well-integrated and centralizing support functions like billing and call centers can help a company adapt to wage inflation while increasing operational efficiency.