Empowering Risk, Elevating Care
About Us
About Hamilton Risk Group
Hamilton Risk Group (HRG) is a private credit organization dedicated to supporting healthcare organizations in value-based arrangements. We offer a comprehensive approach that blends financial capital, underwriting expertise, and professional services to ensure your success in risk-sharing agreements, ultimately improving patient outcomes and financial stability.
Our Approach
Taking Risk: A Journey, Not a First Step
Risk-taking in healthcare is a journey, not a singular decision. A letter of credit (LOC) is just one part of that journey, providing a crucial tool in the process. It is not necessarily the first step, but it plays a key role in empowering healthcare organizations to navigate complex risk-sharing arrangements. At HRG, we guide you through this journey, offering critical support at every stage of your transition to value-based care models.
- Risk Assessment & Analysis
Before engaging in a Letter of Credit, it’s vital to understand the full scope of the risks involved. Our team conducts comprehensive risk assessments, analyzing your organization’s financial health, operational efficiencies, and clinical performance. This allows us to identify potential gaps and areas for improvement, ensuring that when you move toward risk-sharing arrangements, you’re prepared for success. - Strategic Capital Planning
We work with you to develop a tailored financial strategy that aligns with your long-term goals. This includes understanding your cash flow requirements, predicting future capital needs, and optimizing resource allocation. By planning ahead, we help you avoid financial strain when you’re ready to implement a LOC, positioning your organization for sustainable growth.
- Transition Support to Value-Based Care Models
Shifting to value-based care can be a complex and evolving process. We provide strategic consultation and guidance, helping you navigate the transition. From aligning clinical and financial operations to adapting systems and processes for value-based agreements, we work alongside your team to ensure the shift is smooth and well-supported. This foundational work makes subsequent steps—such as leveraging an LOC—much easier. - Operational & Clinical Optimization
Success in value-based care isn’t just about financial health—it’s also about improving clinical outcomes. We assist in optimizing clinical practices and operational workflows to better align with value-based models. By improving efficiency, reducing unnecessary costs, and enhancing patient care, we ensure that your organization is well-positioned to take on risk with confidence when the time comes.
- Building Strong Risk Management Frameworks
Long before a LOC is put in place, we help you establish robust risk management practices. This includes ensuring that you have the right tools to monitor and assess ongoing risk, making sure your organization is equipped to handle the demands of value-based care. By strengthening your internal frameworks, we help you reduce unnecessary exposure, preparing you for more complex financial instruments like the LOC when the time is right. - Regulatory Guidance & Compliance Support
The healthcare landscape is continuously evolving, and staying compliant with regulatory requirements is crucial. We help ensure that your organization remains compliant with local, state, and federal regulations, preparing you for the necessary financial documentation and risk-sharing obligations that may come when securing a Letter of Credit. This proactive approach reduces risk and ensures you meet all legal requirements when the time comes for more advanced financial tools.
Why a Letter of Credit is Better Than Equity
Unlike equity, which requires giving up ownership or control in your organization, a letter of credit (LOC) offers healthcare organizations the capital needed to meet reserve requirements without diluting ownership. Here’s why it’s a better option:
- No Ownership Dilution: A LOC does not require giving up shares or control in the organization, preserving your ownership structure and decision-making authority.
- Reduced Financial Risk: A LOC provides a secured financial solution without the long-term financial commitment of equity investment, giving you flexibility in managing your finances.
- Preserve Future Growth Potential: By avoiding equity dilution, you maintain full access to the upside of your organization’s future growth, allowing for greater long-term financial benefits.
- A LOC allows you to meet regulatory requirements and manage risks without sacrificing the value of your organization, unlike equity-based financing.
How We Help You Succeed
- True Autonomy: HRG empowers healthcare organizations with the flexibility and independence to manage and succeed in value-based care models, allowing you to retain full control over your operations and strategies.
- Aligned Interests: HRG is committed to your success. We don’t just provide capital and risk management; we partner with you to ensure that you meet your clinical and financial objectives over the long term.
- Tailored Solutions: HRG offers flexible financing options customized to fit the unique needs of your organization, helping you thrive in the value-based care environment.
- Letters of Credit: To meet reserve requirements for value-based agreements.
- Professional Services & Staffing: To ensure ongoing success and effective risk management.
- Integrated Support: HRG’s combination of financial capital, expertise, and services positions you for long-term sustainability and success in value-based care models.
Contact Us
For more information or to discuss how Hamilton Risk Group can support your healthcare organization, please contact us:
FAQs for Hamilton Risk Group’s Approach to Value-Based Payment Models
What does a Hamilton Risk engagement look like?
There will be a needs assessment conducted by our Professional Services team. (Do we include some basics in what the Needs assessment covers?). A remediation/corrective action plan will be created then implemented.
How do I get a letter of credit?
Upon completion of the Needs Assessment, Hamilton Private Credit will issue a letter of credit for the loss reserve requirements supported by reinsurance.
How does the investment strategy lower the cost of capital for loss reserves??
Replacing required cash loss reserves with off balance sheet letters of credit supported by reinsurance.
Is my letter of credit secured?
Your organization is responsible for the first 20% of claim losses and an escrow account is established at Lloyds Bank of NY to cover this potential loss claim.
How will the Professional Services team provide organization support?
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