Gary Herschman, Paul Gilbert Quoted in “Long-Term Care Deals Outpace Other Health-Care Sectors in May”

Bloomberg BNA Health Care Daily Report

Gary W. Herschman and Paul D. Gilbert, Members of the Firm in the Health Care and Life Sciences practice, in the firm’s Newark and Nashville offices, respectively, were quoted in the Bloomberg BNA Health Care Daily Report, in “Long-Term Care Deals Outpace Other Health-Care Sectors in May,” by Mary Anne Pazanowski.

Following is an excerpt:

Over 90 deals across many sectors of the health-care industry made May another strong month for transactions in this hot industry sector.

Long-term care deals led the curated list of deals, either announced or closed during the month, compiled for Bloomberg Law by a team of investment bankers who advise health-care industry clients. The 30 long-term care entries in May is double the number on the list that involved the next two leading sectors: hospitals and health systems, and physician practices and services. …

The 86 long-term care-related deals on the 2018 year to date list, along with 25 home health and hospice-related entries and 25 rehabilitation services-related entries, make a total of 136 deals either announced or closed year-to-date in sectors that make up the long-term care continuum. This large number “signals that these related sectors will continue to heat up as more baby boomers age into their 70s and 80s and require some level of care along the ‘long-term care services continuum,’” Gary W. Herschman, an attorney with Epstein Becker Green in New York and Newark, N.J., told Bloomberg Law.

The long-term care continuum ranges “from home health and rehab on one end, to assisted living and then to nursing homes on the other end,” Herschman said. Herschman, a Bloomberg Law advisory board member, advises clients on proposed deals. …

“Several of the hospital transactions announced or closed during the month vividly illustrate the increasing pressures that smaller and stand-alone hospitals continue to face as reimbursement shifts from fee-for-service to quality-based or risk-sharing arrangements, as the operating and regulatory environment becomes more complex, and as capital and technological needs intensify,” Paul D. Gilbert, an attorney with Epstein Becker Green, Nashville, Tenn., added. “In a few of these transactions, it appears that independent hospitals are joining larger systems to preserve hospital services for their communities,” he told Bloomberg Law.