Since the creation of the multifamily office, the financial and business managers of leading executives, entertainers, athletes and entrepreneurs have sought cutting-edge methods to best service their clients’ unique needs. From enhanced bill pay systems to modernized estate management solutions, a variety of innovations have revolutionized the sector—and greatly benefited those who retained managers and firms that were ahead of the curve.
In 2023, advisors and multifamily office groups who wish to remain at that cutting edge not only must review their offerings surrounding comprehensive, concierge healthcare management but also how they are protecting their clients’ online medical information. While accounting and fiscal planning are central to the purpose of the multifamily office, providing access to reliable, secure and industry-leading healthcare data security programs is a critical service that ultrahigh net worth individuals may also come to expect from their financial and lifestyle advisors.
Although rising healthcare costs are not a threat to the personal financial security of most multifamily office clients, they are not immune from everyday concerns stemming from a rapidly evolving—and therefore baffling—healthcare marketplace. Specifically, they are not exempt from the widespread confusion and fear surrounding the disturbing rise of cybercriminal activity in the medical space, which for the thirteenth straight year led all sectors to experience “the most expensive breaches” of data. More and more, multifamily office practitioners are being asked to manage the confounding issues surrounding medical information security, and as one survey found, this issue has clients, as well as the vast majority of Americans, feeling “overwhelmed,” “anxious” and fearful that they will be victimized by a bad actor. (Disclosure: inAssist, parent company of HealthLock, is one of the firms FFO engages to provide this service for our clients.)
With an increasing number of companies entering the fray to address this high-end market demand for bespoke, integrated healthcare security management solutions, it has never been more important for multifamily office leaders to draw upon their expertise to identify trustworthy partners that can best safeguard their clients’ most sensitive information. To this end, it is critical that these partners provide clients with the ability to safely access their healthcare data at a moment’s notice, organize their medical portfolios and understand potential gaps in coverage—all while having the capability to fend off prying hackers if needed.
The ability to keep pace through shifting landscapes is essential for any family office advisor, and while helping protect clients’ financial and credit-related information was a unique offering over a decade ago, that level of service may no longer be enough. The specialists you trust on this critical issue must be able to place you in the best position possible to communicate with your clients the exact outlook of the tight circle of industry-leading professionals who have access to their medical information. Furthermore, each provider should be able to share how the data on their systems is protected from increasingly brazen outside cyber threats.
Having clients’ medical details compromised—such as insurance ID cards or provider information—not only allows potentially sensitive data to fall into the wrong hands, it also may lead to cases of medical identity theft, driving up premiums and overall medical costs in a manner that could take years to reverse. With this ever-present danger lurking in the shadows, it is vital to the long-term fiscal health of today’s high net worth clients that their advisors help them secure comprehensive, clearly defined medical coverage that maximizes return on value and emphasizes airtight cybersecurity.
Because healthcare choices are so personal and sensitive, particularly for high net worth clients for whom privacy and data security are paramount, it is essential that the modern multifamily office remains at the vanguard of healthcare management security services. Each and every client has different needs, and—like prior innovations in this unique space—protected, technology-based medical data security is a can’t-miss solution that is a critical building block toward safeguarding clients’ personal and financial well-being and bolstering their quality of life.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.