Will health care M&A take a hit from an ACA repeal?…Probably Not

While we can hope an ACA repeal comes with a replacement – a Republican health care reform 2.0 plan – many in the health care M&A community have been asking, what effect will an ACA repeal have on the health care M&A market place?

A little hope comes with what I am about to say, but, an ACA repeal likely won’t create a serious downturn in health care M&A activity. The largest reason for this is that both sides of the aisle continue to seemingly agree on some fundamental concepts when it comes to health care – we need to incentivize better care for less money and use technology and big data to get us there.

Shifts in our payer models from fee for service to value based purchasing that rewards quality and efficiency and punishes waste and inefficiency are almost universally accepted by government policy makers and the private sector. These shifts were occurring pre-ACA and don’t appear to be in jeopardy if we get to a post-ACA world. Don’t forget that the Medicare Access & CHIP Reauthorization Act of 2015 (MACRA), the law which transitions mostly outpatient providers toward a value-based payment system, was pretty recently passed with significant bipartisan support. Continue reading “Will health care M&A take a hit from an ACA repeal?…Probably Not”

Watch Closely – Health Care Policy Changes 2017 and Beyond…

It is 2017 and we have a one party-controlled Federal government coming into power in Washington DC. We heard a lot during the presidential campaign and post-campaign about changes that may be coming to our health care system and the potential repeal or revision of significant health care reform policies .

The Republican controlled congress is already working hard on a repeal of the Affordable Care Act (ACA), it is clear they feel they have to deliver on campaign promises and party positions. What is unclear, however, is whether or not replacement legislation will accompany the repeal or follow shortly thereafter. Many health care insiders are concerned that a repeal without a well-designed replacement will create significant disruption. The American Medical Association (AMA) recently released an open letter to congressional leaders asking them to ensure that an appropriate replacement policy is in place before repeal efforts are concluded.

The AMA said in its letter “…we believe that before any action is taken through reconciliation or other means that would potentially alter coverage, policymakers should lay out for the American people, in reasonable detail, what will replace current policies. Patients and other stakeholders should be able to clearly compare current policy to new proposals so they can make informed decisions about whether it represents a step forward in the ongoing process of health reform.” Continue reading “Watch Closely – Health Care Policy Changes 2017 and Beyond…”