HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ DECEMBER 2015 www.harriswilliams.com Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. 0 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ DECEMBER 2015 WHAT WE’RE READING CONTENTS MEDICARE | MEASURING HOSPITAL READMISSIONS . PUBLIC MARKETS OVERVIEW Hospital readmission rates continue to be a key data point for measuring the . EQUITY MARKETS OVERVIEW success of healthcare reform. The Affordable Care Act, in an effort to curb costly . M&A OVERVIEW hospital stays, penalizes hospitals with too many readmissions within 30 days of an inpatient stay. As a result, providers and hospitals have implemented various . DEBT MARKETS OVERVIEW strategies to improve quality data and have largely been very successful as . HEALTHCARE & LIFE SCIENCES measured by readmission rates. However, experts have pointed out that so-called PUBLIC COMPARABLES observation stays are on the rise – and blurring the readmissions metrics utilized as . M&A TRANSACTIONS benchmarks for quality. Observation stays do not trigger penalties under the health law as they are considered outpatient visits. While not all short-term acute- care hospitals have reported a corresponding rise in readmissions rate, some 10% CONTACTS contributed 50% of the overall increase in observation stays from 2010 to 2013. Turner Bredrup While Medicare typically reimburses at a lower rate for observation stays Managing Director (theoretical benefit for taxpayers), the Medicare patients may face significant
[email protected] copays and, worse yet, may be excluded from coverage in the case of certain +1 (804) 915-0110 referrals (e.g., nursing homes).