How will healthcare reform impact your subject company’s valuation?

BVWireIssue #93-4
June 30, 2010

The answer is "it depends, and ‘depends’ is always good from a healthcare valuation perspective,” Elliott Jeter (VMG Health) said in BVR's June 10th webinar on healthcare reform and business valuation with co-presenters Don Barbo (Deloitte Financial Advisory Services) and Mark Dietrich, CPA/ABV. Barbo agreed, adding that health care reform presents a “wonderful opportunity” for healthcare valuation professional services, “not only because of the increase in activity but because of how we can help guide our clients through this.”

The impact of healthcare reform depends a lot on the business you are valuing. When valuing a healthcare entity, “look for things that might affect reimbursement …and the things that might have fees that are specific to that industry,” says Barbo.  Elliott also asks “how does the reform impact the payer mix…is it favorable or unfavorable?” For example, Barbo reports healthcare reform is not necessarily favorable to the home healthcare market because of government efforts to reduce reimbursement.

For more information on the webinar click here.

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