Gary W. Herschman, Anjana D. Patel, and Zachary Taylor, attorneys in the Health Care & Life Sciences practice, in the firm’s Newark office, were quoted in Bloomberg Health Law & Business News, in “Pandemic Strain on Physician Practices Drives More Consolidation,” by Sara Hansard. (Read the full version – subscription required.)
Following is an excerpt:
Physician services was one of the top five active sectors for health-care transactions in February and is on pace to reach well over 300 deals in 2021. …
Consolidation of physician practices can be a concern to health insurers, employers, and consumers because it can lead to higher fees and health-care costs. But many independent physician practices have been strained by the sharp reduction in visits during the Covid-19 shutdown, putting more pressure on them to sell to hospital systems or merge with other physician groups.
“More physicians than ever are considering strategic transactions to become part of larger, well-capitalized organizations with extensive corporate infrastructure—all of which is becoming more crucial in positioning themselves to succeed in the uncertain future,” Gary Herschman, a member of Epstein Becker & Green PC’s health-care and life sciences practice in Newark, N.J., said.
The pandemic, increased competition, and many reimbursement changes underway in the industry all contribute to that uncertainty, he said. …
Health IT in Lead
Health information technology and software was the most active sector in February as “telehealth and other pandemic-driven demand continues to drive innovation that promises lucrative rates of returns for investors,” Anjana Patel of Epstein Becker & Green in Newark, said. …
Cannabis Deals Double
Cannabis deals doubled from January to February, with a total of 33 deals so far early in 2021, “reflecting a trend of potentially close to 200 transactions this year,” Zachary Taylor of Epstein Becker & Green in Newark said. There were 159 cannabis transactions in 2020.
“Acceptance of cannabis, both medicinally and recreationally, is expanding throughout the country like wildfire,” he said.