Burford Capital Healthcare Litigation: Fueling a Growing Legal Battlefield

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Burford Capital Healthcare Litigation:

As rampant consolidation collides with inflation-squeezed margins in the American healthcare system, tensions between service providers and insurers are reaching a boiling point, increasingly spilling over into litigation. This provides significant opportunities for litigation funders, according to a new article by Burford Capital LLC.

Key Drivers of Healthcare Litigation

The Burford Quarterly article, released Wednesday, is titled “The Business Trends Driving High-Value Commercial Disputes In The U.S. Healthcare Sector.” The authors, Burford underwriter Charles Griffin and Managing Director Greg McPolin, outline several factors driving large-scale litigation in the healthcare industry.

“The basic conflict is that providers are trying to get the amount of compensation they feel they’re owed, while payors are trying not to pay too much,” Griffin said in an interview Tuesday.

Burford Capital Healthcare Litigation: Consolidation and Economic Pressures

Several factors have contributed to an environment ripe for large-scale litigation. These include rampant consolidation among both healthcare providers and insurers, increased activity by private equity firms, and higher costs and tighter margins for providers caused by post-pandemic inflation.