Gary Herschman, Paul Gomez Quoted in “Health-Care Transactions Update: July”

Bloomberg BNA Health Law Reporter

Gary W. Herschman and Paul A. Gomez, Members of the Firm in the Health Care and Life Sciences practice, were quoted in a Bloomberg BNA Health Law Reporter special report titled “Health-Care Transactions Update: July,” by Mary Anne Pazanowski. The article discusses the health care transactions occurring in July as well as the current trends among these transactions.

Following is an excerpt (see below to download the full report):

Deals involving acquisitions and consolidations of physician practices are ‘‘hot and getting hotter,’’ Herschman, said.

Physicians are realizing they can increase their ability to meet their quality and payment goals by consolidating and becoming a part of a larger entity, Herschman said. He predicted that trend will continue over time. Within five years, there will be very few small to mid-size practice groups, he said.

There are lots of options for physicians seeking to grow, he said. They can affiliate with mega-sized physician groups, hospital systems, payer groups like insurers and national strategic organizations that provide the same type of service on a national scale. Additionally, physician groups have opened themselves to deals with private equity fund portfolio companies, Herschman said.

As physicians’ financial risks grow and the quality metrics that will be used to calculate their reimbursements continue to evolve, it ‘‘may be comparatively easier for larger and more integrated medical groups to successfully adjust to and perform under these changing conditions, standards and requirements,’’ Paul A. Gomez, of Epstein, Becker & Green PC, Los Angeles, told Bloomberg BNA.

Mr. Herschman and Mr. Gomez serve on Bloomberg BNA’s Health Care Transactions Editorial Committee and regularly provide editorial oversight on Health Law Reporter special reports.