Close to 1,000 healthcare-related deals in 2011
David Nordella (Managing Director, Provider Finance Associates, LLC)
| Jan 18, 2012Levin Associates reports that health-care related merger/acquisition transactions were up 9% in 2011 over 2010. Healthcare services represented 56% of the deals. How is the interest in healthcare services impacting the practice of medicine in your region? Do you see this trend continuing? What will be the impact on the Independent Practice Associations (IPA) in your area?
Reference URL: http://www.levinassociates.com/dealsearchonline-mam
Answers
Company: ERI Economic Research Institute
There is a push for ACO (Accountable Care Organization)service delivery model which is getting mixed reviews due execution of the model. In ACO model the health care provider moves to one system that offers all the health care a patient needs “under one umbrella” with a primary care doctor as the “coordinator.” The ACO goal is to have more integrated health systems like the Mayo Clinic which is world renowned quality health care provider.
Company: Provider Finance Associates, LLC
I agree that the implementation of the ACO system is what's driving consolidation in the Healthcare services sector. Kaiser certainly favors the model. They may have been the template for the ACO system. Being reimbursed as an ACO should do good things for Kaiser's bottom line.
I am curious, though, about how IPA physicians are responding. Are they considering aligning themselves with an ACO? if so, what is the driver? If not, what are physicians doing when they are being impacted by an ACO?