The following article was published by Becker’s Hospital Review
As we move into the second half of 2021, we have much more clarity on where healthcare transactions and physician alignment models are headed.
First, we can say with confidence that transaction activity is on the rise. In fact, transaction deal volume in Q1 2021 was 75% higher than transaction activity in Q1 2020. Second, under the new Stark Law and Anti-Kickback Statute (AKS) rules, the flexibility created to encourage value-based care models with physicians has healthcare leaders racing to figure out new physician alignment models. We have only just begun to see new and creative strategic activity from these two movements within the healthcare industry.
Being proactive with strategy in 2021 will be essential for revenue growth, as well as solidifying key alliances in the upcoming year. If you are not thinking about what 2022 will look like for your healthcare company, you may be behind the curve. Nearly every sector within healthcare is active with transactions and rethinking their physician alignment models. In addition, there are new players in the market, such as management companies specialized in certain sectors, along with a surge of private equity players. The need to be thinking strategically has perhaps never been greater, and the breadth of knowledge required to succeed can be daunting. That said, there are ways to break this all down into bite-sized pieces – do you want to get involved with a specific healthcare sector, or update your physician alignment strategy, or both?