Special Report: Health Care Transactions 2016 Forecast

Bloomberg BNA's Health Law Reporter

Paul A. Gomez and Gary W. Herschman, Members of the Firm in the Health Care and Life Sciences practice, alongside colleagues from the health care investment banking industry, co-authored a special report for Bloomberg BNA’s Health Law Reporter titled “Health Care Transactions 2016 Forecast.”

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

The past year was a very strong one for merger and acquisition activity, as witnessed in part by the list of select transactions announced and completed in December 2015. There do not appear to be any signs of significant slowing in the year ahead. The Affordable Care Act (ACA) continues to influence M&A activity, driving a number of vertical and horizontal transactions and creating health-care sectors populated by fewer, larger players. Continued movement away from a health-care payment landscape based predominantly on the fee-for-service model to one utilizing a variety of value-based payment models is increasingly shifting financial risk to providers and consumers.

Advances in health-care information and connected health technology, as well as the ability to capture, categorize, analyze and then use patient information to proactively intervene in patient care is helping healthcare providers to better manage the health of targeted patient populations. Improved health-care IT also enables health-care providers to better respond to a health-care landscape that places greater risk upon them and provides more targeted incentives that reward optimal patient health outcomes and effective management of health-care costs.

These and other trends continue to drive a variety of hospitals, health systems and other providers to find new ways to collaborate and affiliate with one another and continue to attract substantial private equity interest and investment. Notwithstanding the presence of an active regulatory enforcement climate—including active enforcement on both the antitrust and fraud and abuse compliance fronts—all of the factors noted above should continue to drive robust health-care transaction activity through 2016.

Below are five trends related to the variety and types of health-care transactions, participants in the healthcare sector and certain areas of health care where we expect to see strong deal activity in 2016. …

Mr. Gomez and Mr. Herschman serve on Bloomberg BNA’s Health Care Transactions Editorial Committee and have previously provided editorial oversight on Health Law Reporter special reports.