Gary Herschman, Yulian Shtern Quoted in “Long-Term Care Deals Dominate Health Industry in February”

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 “Long-Term Care Deals Dominate Health Industry in February,” 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:

The long-term care sector continued its domination of health-care deals in February, Bloomberg Law’s transactions advisory board says.

Thirty-two long-term care transactions were announced or closed during the second month of the year, double the number that took place in the next-closest sector, health-care information technology, a list compiled for Bloomberg Law by investment bankers ECG Management Consultants and Provident Healthcare Partners LLC shows. …

But the growth isn’t limited to long-term care, Gary W. Herschman told Bloomberg Law. Deal volume throughout the entire health-care industry will continue upward in 2019, he said. Herschman is a member of Epstein, Becker & Green PC in Newark, N.J.

Overall deal numbers will increase, given continuing trends in consolidation, reimbursement rule changes, and technological developments, Herschman said. …

Hospitals & Health Systems

Some big deals fell through in February, Herschman acknowledged. Baylor Scott & White Health and Memorial Hermann Health System, for example, called off their merger, ECG’s Nicholas B. Davis reported. …

Health IT

Consumer-centric software developers are drawing investors’ interest in the health IT sector, Yulian Shtern, of Epstein, Becker and Green, told Bloomberg Law. Programs providing solutions to patient engagement problems and allowing for better electronic patient-provider communications especially were in demand, he said.

Platforms developed for use in particular specialties and clinical settings also made for hot targets in February, Shtern said. Buyers went after electronic medical records and financial solutions software tailored especially for clinical research organizations, inpatient facilities, ambulatory care centers, emergency rooms, and post-acute care facilities, he said. …

Physician Practices

Radiology was the hot physician practice specialty in February, Herschman said. Consolidation in this sub-sector is likely to continue because regulatory reimbursement trends favor larger outpatient radiology providers, he said. …

Dermatology practices are another hot specialty, Herschman said. They offer “unique economic advantages” and are attracting private equity investment, because their revenue sources include both elective cosmetic procedures and medically necessary procedures, he said.