Obamacare Will Fuel Mega Corporations and Be Referendum for 2012 Elections

By US Daily Review Staff.

The Supreme Court’s ruling issued on the Affordable Care Act will spur more consolidation in the healthcare industry, according to a recent survey of more than 200 healthcare leaders from across the industry conducted by healthcare public affairs firm Jarrard Phillips Cate & Hancock.

Conducted under the firm’s trademark Inside Baseball brand, the survey garnered responses from more than 200 healthcare leaders who make organizational, operational and financial decisions at their respective organizations. Although 53 percent of respondents feel that absolute clarity on the law will not arrive until after the November presidential election, a vast
number of respondents feel that the ruling is a strong indicator that consolidation and entrepreneurship will continue to mark the industry moving forward.

“Executives are gearing up for increased M&A activity, both in the Nashville healthcare community and nationally,” says Molly Cate, Partner at Jarrard Phillips Cate & Hancock. “In Nashville, where healthcare is a $70 billion industry, we’ll see a flood of new ideas and companies flood the market, according to survey results.”

Equally as clear in the survey: healthcare leaders aren’t waiting for the political process to iron out the details of healthcare
reform. When asked how the ruling will change operational or budgetary decisions, 73 percent aren’t making any decisions
based on last week’s ruling, mainly because they’ve already planned for it and are already implementing their strategy.

Survey Highlights

Below are highlights from the survey:

  • When asked will the vote bring the clarity and stability that investors, analysts and operators have been looking for in the healthcare industry, 53.1 percent said “No … the presidential election will essentially turn into a referendum on the healthcare law and muddy the waters for months to come.”
  • When asked how the ruling impacts hospital M&A activity, 65.7 percent said bigger is better – more consolidation in the industry.
  • Looking at that same question, 18.6 percent said investor-owned hospital chains will be flush with cash and an attractive candidate for hospital boards across the country.
  • When asked what impact the ruling will have on Nashville’s healthcare industry, 28 percent said entrepreneurs will flood the market with new ideas and companies.
  • Looking at that same question, 18.5 percent of respondents predict Nashville’s healthcare IT sector specifically will boom, even more so than in the dot-com era. And close behind, 18 percent predict that all of the medium-sized hospital companies that have been rumored to consolidate for years finally will.
  • When asked if making any new operational or budgetary decisions at their company in light of yesterday’s ruling, 72.8 percent said no.7/9/12 Healthcare Leaders Say Supreme Court Ruling Will Spur More Consolidation in the Industry | Business …
  • When asked where the law will stand this time next year, 33.6 percent predict it will be stalled in the Senate
All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.

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