September 1, 2015, S. Plainfield, NJ. As the healthcare industry experiences substantial changes due to new government regulations, oversight, and reimbursement levels, hospital bankruptcies and mergers are occurring on an unprecedented scale. The vast majority of US hospitals are losing money or barely breaking even and many are at risk. These forces have put their suppliers at grave risk of losses.
According to the Forbes article America’s Most Profitable Hospitals, “the median operating margin for 200-bed hospitals and above was slightly negative (-0.7%) last year. That means the money that was brought in from patients fell short of what they needed to spend on staff, equipment, buildings and other items.”
These events drove Credit2B to build a first-of-its-kind rating system for hospitals and other medical institutions based on both quantitative (financial metrics) as well as qualitative (patient outcomes) operating metrics. There is a unique opportunity to combine Credit2B’s trade data and private financials with multiple sources of medical and health data that are predictive of a payment default for our clients exposed to this industry.
Credit2B enlisted Sandeep Puri, former D&B executive and current CEO of Silicon Valley based patient management software company Patientriciti, to assist in bringing it all together. “Credit2B has built a talented team willing to quickly pull in massive data and resources to build a solution infinitely more relevant for the healthcare industry than what is available from the other credit bureaus”, said Puri, who is now advising the company on its healthcare strategy.
According to Irina Rabinovich, Vice President of Scoring Analytics at Credit2B and a former software engineer and data modeler at D&B , “We took millions of records from disparate sources to build a strong foundation of medical entity firmographics and trade data. Our next step was to integrate the most predictive data elements that highlight weakness in a hospital’s financial and patient quality metrics, including factors like patient feedback and Medicare data. We then sought feedback from our clients around other operating parameters that drove hospitals out of business, so we brought those in as well.”
Shyarsh Desai, CEO of Credit2B stated, “This launch is just the initial version of a powerful suite of credit risk solutions for the healthcare industry. Credit2B’s customized vertical market strategies include not only customized scoring, but also trade supplier peer data which enables our clients to benefit from the ‘intelligence of the community’ going beyond what is available from traditional credit report companies.”
This approach has been core to how Credit2B, an innovative technology business information company, is successful in driving growth. The firm has a strategy to use this strategy as a framework for similar industry-specific solutions in other markets moving forward. This includes working closely with some of the leading, independent in-person credit groups in the country that are seeking a more scalable technology to serve their needs.
Bonnie Gerrity, V. P. Product
Credit2B’s goal is to empower accurate and timely business decisions by connecting the trade credit experiences of every supplier in the world. Using patent-pending technology, Credit2B’s collaborative platform allows you to create connections with trusted peers and securely control the exchange of data and experiences on common customers in an anti-trust compliant network. This is combined with relevant public filing and third party risk data, providing everything you need to make a credit decision in one, convenient platform.