Gary Herschman, Yulian Shtern Cited in “LTC Leads Hot Healthcare Market in First Half of 2019”

McKnight’s Long-Term Care News

Gary W. Herschman, Member of the Firm, and Yulian Shtern, Associate, in the Health Care and Life Sciences practice, in the firm’s Newark office, were cited in McKnight's Long-Term Care News, in “LTC Leads Hot Healthcare Market in First Half of 2019,” by Kimberly Marselas.

Following is an excerpt:

Citing slightly different numbers, attorneys and analysts with Epstein, Becker & Green reported in Bloomberg News last week that the long-term care sector is the most active in health-care sector through June. Their analysis included 143 announced or closed transactions.

That is up 43% from the 100 long-term care transactions through the first six months of 2018, according to the Bloomberg Law-Healthcare Advisory Panel.

The Epstein experts, writing with representatives from ECG Management Consultants, pointed to the surging aging population and recent healthcare initiatives that expanded insurance coverage as major M&A drivers. While volume has grown, the shifting payer mix and lower reimbursement rates provided for Medicare and Medicaid patients means providers are seeking more strategic alignments.

“Long-term care organizations have shifted focus to improving operational efficiencies via economies of scale, resulting in further industry consolidation,” they wrote. “In addition to strategic acquisitions, long-term care organizations also have attracted interest from financial sponsors such as private equity groups and real estate investment trusts (REITs) due to the sector’s relatively stable cash-flows and inherent value of the real estate that comes packaged with business operations.”

Related reading:

Bloomberg Law, “INSIGHT: Long-Term Care Continues to Lead Health-Care M&A Activity,” by Gary W. Herschman and Yulian Shtern.