Georgia gains on shifts in physician employment models
- Inelasticity in demand, an aging population and changes in healthcare policy have led to steady and continued growth in healthcare employment—outpacing total non-farm job numbers and wage growth through 2024 for most industries.
- Georgia will be an acute winner due to availability of workforce and a growing population.
- Physician demand is strong, but lack of supply will require technology implementation and improved employment models.
- This will increase the need for physician assistants or nurse practitioners to fill the gap.
Capital seeking healthcare consolidation provides physicians security of employment, if they want it.
- Factors to watch carefully are:
1. Lifting of uncertainty within the market,
2. Flow of capital toward and away from healthcare consolidation,
3. Technologies that remove the complication from medical billing,
4. Compression of physician pay and/or improving hospital profitability.
On March 18, 2016, the Georgia Association of Healthcare Executives sponsored a closed door session for C-Level Executives throughout the state to hear perspectives from two insiders: Harold Kirtz, Senior Litigator for the Federal Trade Commission, and Mr. Will Melson, President of the Broadwell Group. The discussion went long, but here’s half of what was shared from a regulator’s perspective. Please note that any comments by Harold Kirtz are not necessarily the views of any individual Commissioner or of the Commission as a whole.
Q: What things does the FTC look for in its jurisdiction over mergers and acquisitions?
A: We look for whether the merger or acquisition will substantially lessen competition in a particular market. We have to determine what the product or service market is, what the geographic market is, what concentration is there among the current players in the market, and whether there is the likelihood of substantial entry by new or expanding players in the market.
On March 18, 2016, the Georgia Association of Healthcare Executives sponsored a closed-door session for C-Level Executives throughout the state to hear perspectives from two insiders: Harold Kirtz, Senior Litigator for the Federal Trade Commission, and Mr. Will Melson, President of the Broadwell Group. The discussion went long, but here’s one half of the story from a dealmaker’s perspective.
Q: What is the actual “state” of Mergers & Acquisitions?
A: While none of us have unlimited funds, healthcare professionals struggle with the idea there’s a lot of things I “could” do, but what “should” I do? When it comes to mergers & acquisitions, you’re probably presented with a lot of opportunities to consider – should we join? Should we buy? Should we merge? Should we integrate?
I think we’re in the middle of it. And when you’re in the middle of all this change, it’s sometimes a little hard to figure out. Should we go with a population health management? Should we do something with a payer plan? We see a lot of health systems that will dabble in something that looks like a plan.
You would have thought that in 2010, M&A was on a huge tear. And even up to 2014, you’re thinking there’s no way it can be any bigger. Last year was a 66% increase of M&A activity in Healthcare. Even nationwide – Wall Street Journal reported there were over $2 Trillion of mergers.
Cash Payments, Deductibles and the Patient Experience
- Macro changes in healthcare mean that more patients are directly trading currency for care.
- When patients pay more, their expectations of care change.
- The Wall Street Journal is reporting a return to cash discounting for patients.
- Patients’ disconnection to invoicing drives non-payment.
- Coordination and thoughtfulness in invoice delivery increases percentage of payment revenue.