Somebody must have invoked the ancient curse “may you live in interesting times” because, for healthcare services providers, these are certainly interesting times. The last major upheaval in the healthcare services industry was the transition away from reimbursement to the Prospective Payment System. Now policymakers have done it again, trying to optimize healthcare spending by replacing fee-for-service healthcare delivery with value based models that emphasize patient coordination and outcomes. This places home and community based services at the fulcrum of growth and efficiency, stimulating activity in the M&A market as providers of all types implement strategies to adapt. Although growth opportunities seem almost limitless, economic and political conditions dictate that all providers must do more with less. Consolidation is necessary to improve efficiency, driving buyers to seek sellers. We’re seeing a divide between providers who adapt and those who continue to do things in the same old way, creating a separation between the top and bottom of the market. Platform-sized acquisitions continue to command premium prices and the middle of the market keeps humming while distressed operations can be had for the replacement cost of their assets.

Yes, these are interesting times in the healthcare services industry. Risks and opportunities abound and the market just keeps on growing due to demographic trends that have just begun to take effect. We are excited to be in business during these interesting times. With over 25 years of experience in the healthcare services M&A marketplace, we have seen interesting times before and we know how to mitigate risks and capitalize on opportunities.

Consider putting our experience to work for you!