Private equity-backed tool Data iSight is making billions for insurers while shifting costs to patients, a New York Times investigation reveals. MultiPlan, a cost-containment firm, offers Data iSight, which recommends payment amounts for medical bills. The tool has become a cash cow, generating significant revenue for insurers and MultiPlan through processing fees.
The evolution of Data iSight highlights the influence of private equity in American healthcare. Insurers use the tool to negotiate lower payments to medical providers, resulting in higher profits for themselves. However, this practice has led to unexpected bills for patients, reduced pay for medical professionals, and increased costs for employers funding health plans.
Patients, largely unaware of Data iSight’s role, have been hit with higher bills for medical services. The tool’s recommendations, often significantly lower than market rates, have left patients and providers struggling to cover costs. Despite complaints, MultiPlan defends its payment recommendations as fair and necessary to lower out-of-network costs.
As private equity investments in healthcare practices continue to rise, concerns over rising medical bills persist. Data iSight’s impact on patients, doctors, and medical facilities has been significant, with some experiencing drastic increases in costs. The tool’s opaque methodology and low payment recommendations have sparked controversy and legal battles.
The story of Data iSight sheds light on the complex relationship between private equity, insurers, and patients in the healthcare industry. As the tool continues to drive profits for insurers and MultiPlan, patients and providers are left grappling with the financial implications of its cost-containment strategies.
