Huge, historic healthcare debate: takeaways for BV analysts

BVWireIssue #84-1
September 2, 2009

“The potential for a major overhaul of the U.S. healthcare system has introduced considerable uncertainty into this segment of the economy—and uncertainty is a key source of industry-specific risk and even more importantly, subsector and specific-company risk,” says Mark Dietrich, discussing the debate on healthcare in Congress, which reconvenes on September 8th. Notable issues include:

  • Cutbacks in payment for high-tech imaging;
  • Enhanced payment for primary care physicians at the expense of specialists;
  • Limitations on specialty surgical hospitals;
  • Elimination of Medicare Advantage; and
  • Potential Massachusetts-style ‘play or pay’ mandate for employers with economy-wide implications.

“Perhaps the most significant unspoken reform is the potential to impose a uniform system of benefits and pricing on a nation with widely divergent local market conditions,” Dietrich tells the ‘Wire. “This and all these important potential changes will have a critical impact on value.”

Get the most comprehensive guide. BVR’s Guide to Healthcare Valuation offers keen insights into the all the medical industry subsectors to enable BV analysts to account for evolving healthcare reform factors in their current conclusions of value. 

Expert authors include Todd Sorensen, Ambulatory Surgery Centers; Carol Carden, Dialysis Clinics, Don Barbo, Hospitals; Greg Anderson, Physician On-Call Arrangements; Tim Smith, Fair Market Physician Compensation; Kathie Wilson, Divorce Valuation; and Mark Dietrich on Medical Practices and Healthcare Markets. Mark and Todd will be on a Healthcare Panel at the ASA Advanced BV Conference in October, and Carol, Don and Mark will present healthcare valuation at the AICPA Business Valuation Conference in November (see “Get Ready…” item below for conference updates).

Mountains of misinformation.  Until then, for continuing insights into the “misinformation, disinformation and overall lack of information” regarding the healthcare debate, Mark invites al BVWire subscribers to check out his blog.

Please let us know if you have any comments about this article or enhancements you would like to see.