M&A and Private Equity Issues in Healthcare

In recent years, healthcare M&A transactions have been increasing in frequency and complexity and becoming more innovative.  With the continued implementation of the Affordable Care Act, the growth of Medicare Advantage, managed Medicaid and ACOs, the recent acceleration toward population health management and value-based reimbursement implementation by payors, hospital systems and physician groups, the healthcare industry is facing a “build or buy” dilemma, bumping up healthcare services transaction multiples and otherwise cluttering the market with opportunities for growth.  Large, well-positioned insurance and hospital systems, physician practices, private equity and other financial investors are seeing new and exciting opportunities in the marketplace.  As millions of newly insured patients enter the healthcare system and payment models shift, we continue to see immense consolidation pressure on medical practices and hospital systems to achieve scale and capture “lives”.  Additionally, breakthrough innovations in healthcare information technology are also revolutionizing care management, patient engagement and involvement in care and the practice of medicine itself.  Government programs such as the Meaningful Use of Electronic Health Records are compelling providers to innovate and adopt new technology platforms. 

These evolutionary changes in the healthcare services market present significant opportunities for investors and healthcare organizations with mature population management techniques to capitalize on the changing marketplace.  This course, presented by Sheppard Mullin attorneys Aytan Dahukey and Vinay Bhupathy, reviews the trends described above in healthcare transactions, the reasons for such trends and associated legal considerations.  It also describes major transactions in the healthcare space and the hurdles healthcare entities may face in closing such deals in an ever-changing legal and regulatory environment.  Lastly, Mr. Dahukey and Mr. Bhupathy examine the various perspectives of providers, both institutional and individuals, payors and investors when evaluating healthcare transactions. 

Learning Objectives:

I.    Recognize healthcare transaction trends

II.   Describe major transactions in the healthcare space

III.  Identify hurdles healthcare entities may face in closing deals

IV.  Examine the various perspectives of providers, payors, and investors