Mistakes are magnified in frothy capital markets when transaction prices and deal multiples are high. The healthcare sector continues to garner the attention of investors as private equity investment and consolidation drive multiples higher across the healthcare spectrum. Elevated multiples paid on healthcare businesses call for expert financial due diligence and quality of earnings analyses… Read More

Written by: Michael Miner and Vincent M. Kickirillo Dry powder in the private capital markets has been on the rise since 2012 and surpassed the $2 trillion mark for the first time in 2018.[1] With so much capital to deploy, and the rise of asset values since the Great Recession, private equity fund managers have… Read More

Contract reimbursement is a critical component of revenue for healthcare service businesses. In the context of a transaction, it is important to understand the impact an acquirer’s contract reimbursement will have on a target’s revenue going forward. How will you assess the potential impact to revenue, and what factors should be considered to understand the… Read More

The number of employed physicians continually increases as both hospitals and health systems navigate alignment strategies surrounding the shift to value-based care. As a result, the issue of “stacked” compensation is becoming more prevalent as physicians are continually taking on more administrative roles to support these alignment strategies. Stacked compensation refers to taking the individual… Read More

Written by Colin Park and Clint Smith 2018 was another dynamic year for the healthcare industry filled with continued evolution of patient care models and transactions aimed at gaining scale and greater vertical and horizontal integration. Amazon, JPMorgan, Berkshire Hathaway and other major players are plotting their entrance into the healthcare marketplace. The healthcare industry… Read More

Written by William Teague and Drew Smyth As detailed in the VMG Healthcare M&A Report: 2018 Trends and 2019 Expectations, acute care hospital transaction activity has been robust with numerous deals being closed or announced over the past year. One of the most high-profile, recent transactions was HCA’s acquisition of Mission Health, a non-profit hospital… Read More

A high level overview of lab marketing services agreements under the new law, Eliminating Kickbacks in Recovery Act of 2018 (“EKRA”) EKRA brings a regulatory change that is having a drastic impact on the lab marketing services arena, including commission-based payments to marketing and sales professionals. EKRA is designed to prevent referrals in exchange for… Read More

This article is intended only for general informational purposes. VMG Health is not rendering tax, accounting, financial, or other professional advice through this article. This article is not intended to replace such professional advice or services, nor should it be used as a basis for any action or decision which may affect your business or… Read More

So, You’re Building (or Investing In) a Medical Office Building… In decades past, a speculative (“spec”) building for medical tenants was rarely constructed, as few real estate developers were willing to take on the perceived risk associated with the medical sector due to comparatively high tenant improvement (“TI”) packages, uncertain absorption periods, and the dominance… Read More

If you discuss the current transaction environment with healthcare professionals, Physician Practice Management (“PPM”) deals would be one of the hottest trends you would hear about. Strategic operators looking to defend their existing facilities from competition and private equity buyers seeking to deploy idle capital have made acquisitions of physician practices in specialties such as… Read More