OPINION
A non-executive viewpoint: Adding value to healthcare businesses
23 Nov 2023
Currently Non-Executive Director of EMS Healthcare, Christa Echtle has 20 years’ experience working with healthcare companies with private equity investment. During her time in Non-Executive Director or Chair roles, she has helped management teams with a range of board-level decisions and overseen seven exits.
How non-executives add value in the healthcare sector
Prior to becoming a Non-Executive Chair in 2003, Christa was a CEO of a specialist healthcare recruitment company. When that business moved to private equity ownership, the role of a non-executive appealed as a way to apply her sector expertise across a range of businesses.
Christa said: “There isn’t a ‘typical day’ as a non-exec, and its important to let the management teams get on with the day to day. What a non-exec should offer is critical thinking – it’s not always about the right answers – but about asking the right questions.”
Having worked with several private equity firms, my view is that LDC’s people help the firm find its meaning and focus in their chosen market, making the company standout from competitors."
“What non-executives rate and need is access. LDC has an approachability, responsiveness and timely input which is essential for business. It’s open and collegiate.”
Taking advantage of technology development
“Technology will undoubtedly continue to play an ever more significant role in healthcare. There are numerous opportunities for healthcare companies to invest in technology, and the benefits can be significant in terms of efficiency gains – getting the right systems, supported by employees with the right training and experience is vital, and business leaders need to be able to make an informed choice about what technology is the best fit for their company.
“With such a range of choice, the difficult bit is assessing which opportunities will actually have traction into the future. You’re really betting on the future
“Without doubt, one of the biggest benefits of working with private equity is the strategic understanding and market knowledge that can help unlock opportunities, including investing in new technology and innovation.”
Changing the face of healthcare
“Technology is also changing the way healthcare is administered. The concept of ‘hospital at home’ is a good summary of the direction healthcare is headed.
“The focus is increasingly on the patient, with more procedures administered by the patient. That means the remoteness of service will leap forward too.
“The growth potential in healthcare is huge because there is going to be a radical change in how it is delivered. Healthcare provision is in the process of being reconstructed – so unless you are in need of a critical intervention, you won’t see the inside of a hospital. The door to this is well and truly open – helped by what happened during the Covid-19 period with testing at home, remote GP appointments and the like.”
Navigating international expansion
“From previous experience I know that expanding internationally can be a fantastically interesting opportunity, but the management team really needs to understand the markets it wants to expand into. Detailed research at the start will prevent many difficulties later on.
“International expansion is demanding and difficult – whether organically or through buy and build. There are differences in language, culture, processes and procedure to contend with. As to an M&A strategy, the management team needs to be clear on its purpose – is it a financial play or a value proposition? Start with why and establish the narrative.