Visiting the Home Health Marketplace: Observations of the Current Transaction Environment

“Visiting the Home Health Marketplace: Observations of the Current Transaction Environment” By Colin McDermott, CFA, CPA/ABV, Corey Palasota, CFA & Wilbur Benitez VMG Health March 2017 A frequently cited solution to reducing rising healthcare costs is to place patients in the lowest cost setting of care.  Accordingly, home health has become a forefront discussion of the.. read more →

Joint Venturing Your Behavioral Health Unit? Insights and Valuation Considerations

By William Teague, CFA and Matt Crook VMG Health Market Overview The behavioral health industry has historically been a fragmented market comprised mainly of independent freestanding operators, state institutions and acute care hospital departments. Current estimates by the Federal Substance Abuse and Mental Health Services Administration indicate that approximately 64.2% of behavioral health facilities are privately.. read more →

7 Things You Need to Know About PACE Programs

By Genevieve Gerten and Kevin McDonough VMG Health What is it? Program for All-Inclusive Care for the Elderly (“PACE”) provides comprehensive healthcare services for the frail and elderly. PACE serves as an alternative opportunity to allow the elderly to remain in their communities, rather than going to a nursing home or similar facility.   What care.. read more →

Bundled Payment Program Expansion Delayed 3 Months by CMS

By Winston Smart VMG Health On Tuesday March 21, 2017, the Federal Register will publish an interim final rule delaying the effective dates of a final rule regarding bundled payment programs published January 3, 2017 titled “Medicare Program; Advancing Care Coordination Through Episode Payment Models; Cardiac Rehabilitation Incentive Payment Model; and Changes to the Comprehensive Care.. read more →

Hospital Valuation: Analyzing the Correlation of Hospital Size and Deal Multiple

How Size Influences Hospital Valuation Intuitively, large hospitals are more attractive as acquisition candidates when compared to smaller hospitals due to certain structural advantages. Larger hospitals can take advantage of economies of scale, attract skilled workers, access capital markets and create integrated provider networks. Because of these advantages, one might expect to observe higher transaction.. read more →

The Comprehensive Primary Care Plus Initiative: The Latest in Primary Care Compensation and Upcoming Fair Market Value Challenges

By Jen Johnson, CFA and Mary Fan, CVA The CPC+ Initiative In April of 2016, the Center for Medicare and Medicaid Services (CMS) unveiled the Comprehensive Primary Care Plus (CPC+) initiative. It’s the largest investment in primary care transformation to date as part of the shift towards value-based reimbursement (VBR). This reform program is an.. read more →

Healthcare Reform and the ASC Industry: Observations & Outlook from the Experts

Healthcare Reform and the ASC Industry: Observations & Outlook from the Experts By Kevin McDonough, CFA and Brett Spencer Health Value Insights How has the Affordable Care Act (“ACA”) shaped the ASC market? According to leaders in the ASC industry, this is a question to which the response has been “it’s too early to tell.”.. read more →

Hospital Valuation: Beware of Market Approach “Rules of Thumb”

Throughout history, mankind’s ability to recognize patterns (especially potentially dangerous patterns) in the environment and respond quickly was crucial to survival. The study of evolutionary psychology describes how mankind has evolved into pattern-recognizing machines that connect dots and draw conclusions out of patterns we think we find in nature. In a similar way, hospital valuation.. read more →