Gary Herschman, Yulian Shtern Quoted in “Hospital Systems Give 2019 Health Deals an Explosive Start”

Bloomberg Law Health Law & Business

Gary W. Herschman, Member of the Firm, and Yulian Shtern, Associate, in the Health Care & Life Sciences practice, in the firm’s Newark office, were quoted in Bloomberg Law Health Law & Business, in “Hospital Systems Give 2019 Health Deals an Explosive Start,” by Mary Anne Pazanowski. Paul D. Gilbert, Member of the Firm in the Health Care & Life Sciences and Corporate Services practices, also advised on the article. (Read the full version - subscription required.)

Following is an excerpt:

January set the stage for another banner year for transactions in the health-care industry, suggesting 2019 may even surpass 2018’s record deal volume.

Over 100 deals were announced or closed during the first month of the year, according to a list compiled for Bloomberg Law by investment bankers at ECG Management Consultants and Provident Health Care Partners.

The overall numbers aren’t surprising, given that many deals closed in January were mostly completed in 2018, Gary W. Herschman, a member of Epstein, Becker & Green’s health law practice in Newark, N.J., told Bloomberg Law. Sellers can realize tax advantages by closing at the beginning of the year, rather than at the end, he said. …

Long-Term Care Still No. 1

The hospital-health system sector put in a strong showing, but still came in second to the long-term care sector. Most of the 29 deals there involved senior housing, followed by skilled nursing facilities and assisted living centers, Herschman said. More than 30 properties were exchanged in each of the senior living and SNF subsectors, he said. …

Consumer-Centric Tech Hot

Health-care information technology sector deals still are going strong, though only 12 appear on January’s list. Companies specializing consumer-centric health-care solutions caught dealmakers’ attention, Epstein Becker’s Yulian Shtern told Bloomberg Law.

“Investors targeted companies that develop software to enhance efficiency and communication between patients and providers,” including programs for improving patient engagement through telemedicine video portals that comply with the Health Insurance Portability and Accountability Act, Shtern said. More deals are likely, as providers try to copy the consumer-centric features of e-commerce and retail companies, he said.