Joshua J. Freemire, Member of the Firm in the Health Care & Life Sciences practice, in the firm’s Baltimore office, was quoted in PE Hub, in “How Medicaid Cuts May Affect Healthcare Deals; GenNx360 Seeks Add-Ons for Pipeline Services Platform,” by Michael Schoeck and John R. Fischer. (Read the full version – subscription required.)
Following is an excerpt:
Medicaid cuts
With the budget bill likely to become law shortly, PE Hub healthcare reporter John R Fischer continues to seek commentary about how Medicaid cuts may affect private equity deals.
Today, we hear from Joshua Freemire, a partner at Epstein Becker & Green and an advisor to healthcare investors and their portfolio companies.
How might changes to Medicaid affect PE deals if the bill is passed into law?
That will depend on a lot of factors, especially how much the target depends on Medicaid funds. Overall, companies that are heavily dependent on Medicaid will be less attractive as there will simply be less Medicaid funding. The proposed cuts would affect many provider types directly by reducing available Medicaid funds but will also impact providers who interact with those providers even if they don’t receive Medicaid funds directly (think entities that sell into hospitals, for instance).
