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Gary Herschman, Kevin Ryan Quoted in “Health-Care Transactions Update: February”

Bloomberg BNA Health Law Reporter

Gary W. Herschman and Kevin J. Ryan, Members of the Firm in the Health Care and Life Sciences practice, in the firm’s Newark and Chicago offices, were quoted in a Bloomberg BNA Health Law Reporter special report titled “Health-Care Transactions Update: February,” by Mary Anne Pazanowski.

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

The lower numbers were to be expected and don’t mean there has been a downturn, Gary Herschman, of Epstein, Becker & Green PC in Newark, N.J., said. February is a short month, and several of the transactions on January’s list had been teed up for a while and were expected to close or be announced in the first month of the year. Transactions volume also may have been higher in January based on an expectation that they would receive more favorable tax treatment under the new Trump administration.

There is no evidence so far that optimism was misplaced. It will take three to six months to determine whether transactions activity in the health-care sector has slowed down, Herschman said. No one on Bloomberg BNA’s transactions editorial advisory board believes that is going to happen. Deals involving health information technology companies and the long-term care sector as usual lead the list in the number of transactions, but there have been other interesting developments, such as an uptick in deals in the multispecialty physician practice space, rising investment in specialty physician practices—as certain specialties become popular among dealmakers— and growth in ambulatory surgical center (ASC) transactions.

ASC Investments. ASCs are, and will continue to be, a major source for investment expansion, Kevin J. Ryan, of Epstein, Becker & Green PC in Chicago, told Bloomberg BNA. Many types of procedures are performed at these centers, ranging from eye surgery to joint replacements.

They are a good investment because ASCs are more efficient and less costly than hospitals, Ryan said. ASCs can offer bundled pricing, and their operators aren’t required to provide the same type of services as hospitals, such as emergency care.