18
JOINT
VENTURES
8 Trends in Healthcare Mergers & Acquisitions for 2017
By Laura Dyrda
C
apital One released its annual survey
on merger and acquisition activity, il-
lustrating what to expect in the year
ahead.
More than 450 healthcare executives re-
sponded to the survey.
"With M&A and a strong new business seg-
ment outlook, executives are clearly keeping
all avenues to growth on the table," said Al
Aria, senior managing director of Capital One
Healthcare. "As capital needs rise, it's critical
that companies find a financial partner that
understands the healthcare marketplace."
Here are eight trends from the report:
1. irty-one percent of executives plan to
launch new segments or business lines to
drive growth, up from 17 percent last year.
2. irty-eight percent of the executive re-
spondents report merger and acquisition
transactions are driving their growth plans
for 2017, a drop from 41 percent last year.
3. Twenty-six percent of the respondents who
said M&A activity would drive their growth
in the coming year reported organic growth
initiatives as their top strategy.
4. Almost half of the respondents said they ex-
pect capital needs to rise in 2017 and 42 percent
expect they'll require more capital in the year
ahead; 25 percent said the same last year.
5. More than half — 59 percent — of the re-
spondents said ACA changes were their chief
concern for 2017, up from 33 percent last
year.
6. Eighteen percent of the respondents said
regulatory uncertainty was their top challenge
for the year, where 33 percent said the same.
7. Ninety-four percent of the executives re-
ported their business is expected to have a
financial performance on par with last year
or better.
8. Sixty-one percent of the respondents pre-
dict a stronger year in 2017 than 2016; 7
percent anticipate a weaker financial year in
2017.
n
Booming M&A
Activity Spurring
ASC Market
Growth: 4 Points
By Mary Rechtoris
T
hrough 2020, the ASC mar-
ket is likely to continue ex-
panding, a Market Reports
World analysis found.
Here are four points:
1. The report authors note the
surge in healthcare merger and
acquisition activity is driving ASC
market growth.
2. Other factors contributing
to market growth include more
minimally invasive surgeries, with
MIS cardiac procedures experi-
encing a great deal of growth in
recent years.
3. Unfavorable reimbursement
may hinder ASC expansion, as
insufficient reimbursement im-
pedes centers' ability to operate
and profit.
4. The report states reimburse-
ment changes pose a challenge
for ASCs to "maximize their rev-
enue."
n
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