EBG Commentary

Gary Herschman, Paul Gomez Quoted in “Trump Win Won’t Derail Health Industry Transactions, Attorneys Say”

Bloomberg BNA Health Care Daily Report

Gary W. Herschman and Paul A. Gomez, Members of the Firm in the Health Care and Life Sciences practice, in the firm’s Newark and Los Angeles offices, respectively, were quoted in the Bloomberg BNA Health Care Daily Report, in “Trump Win Won't Derail Health Industry Transactions, Attorneys Say,” by Mary Anne Pazanowski. (Read the full version – subscription required.)

Following is an excerpt:

Initiatives spurred by the Affordable Care Act, including value-based care and cost-effective payment models, aren't going away, even if Obamacare is repealed in whole or in part, Gary W. Herschman, a member of Epstein, Becker & Green's health-care practice in Newark, N.J., told Bloomberg BNA.

And, because those developments set the industrywide transactions trend—including consolidations like mergers and joint ventures—in motion, there isn't any reason to believe it will stop either, he said.

There might be “some uncertainty” leading to a fourth-quarter slowdown in transactions activity, given Trump's “unpredictability,” Herschman said. Any impact will be short-lived, though. Transactions likely will pick up after January 2017, he said.

Herschman's partner, Paul A. Gomez, in EBG's Los Angeles office, said “it's far more likely than not” the ACA will be repealed, at least in part. But there is a “consensus among” payers and providers “that traditional payment models, fee-for-service and spiraling costs are unsustainable,” Gomez said. That is, the old ways providers got paid simply have become too expensive to continue.

New business models meant to enhance quality, increase provider coordination, improve cost containment and spur innovation “are likely to continue.” They will keep “driving strong transactional activity in the health-care sector,” Gomez said.

Gomez said some new payment models, quality-care requirements, cost-containment initiatives and outcome-based pay principles “that derive their statutory authority from the ACA may go away or be revised substantially.”