DOCSLIB.ORG

Healthcare & Life Sciences Industry Update

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Healthcare & Life Sciences Industry Update HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 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 │ AUGUST 2015 WHAT WE’RE READING CONTENTS HOSPITALS| COMPETING FOR CHILDREN . PUBLIC MARKETS OVERVIEW As a result of megamergers in the marketplace, specialty pediatric hospitals are . EQUITY MARKETS OVERVIEW facing increased competition from integrated delivery networks. In order to provide a comprehensive service offering, hospitals must gather a large number of . M&A OVERVIEW subspecialties focused on children’s care. Whereas in the past, such an . DEBT MARKETS OVERVIEW aggregation required significant patient volume, now acquisitions, joint ventures . HEALTHCARE & LIFE SCIENCES and partnerships have enabled many health systems to acquire or share the PUBLIC COMPARABLES providers who target these specialized patient populations. The result is that the . M&A TRANSACTIONS children’s hospitals that had once cornered the market face heightened competition. In an article by Modern Healthcare, the publication explores whether this is best for the patient. Given the limited resources who care for these patients, CONTACTS too much competition may dilute the marketplace and drive physicians to other Turner Bredrup markets where there is a substantial patient base to support a world class pediatric Managing Director care center. A link to the article can be found here. [email protected] +1 (804) 915-0110 James Clark Managing Director [email protected] +1 (804) 915-0119 PHARMACY BENEFITS| SQUEEZING OUT EXPENSIVE, BRANDED DRUGS Todd Morris Viagra or Cialis? While some may never have to choose between two of Managing Director [email protected] America’s most well-recognized branded pharmaceuticals, CVS may have +1 (415) 217-3412 already chosen for a large portion of the population. CVS and Viagra made headlines this month when the pharmacy benefits manager (“PBM”) announced it Cheairs Porter would exclude the drug from its coverage. The decision represents a recent trend Managing Director whereby drug-benefit plans have transitioned from guiding patients to cheaper [email protected] drugs to a strategy whereby PBMs are excluding certain drugs altogether. +1 (804) 915-0130 Historically, patients would have been directed to try cheaper options but would Geoff Smith have retained the option to pay more out-of-pocket for more expensive options. Managing Director Excluding drugs altogether, however, may lead to significant cost savings for [email protected] benefit plans assuming the cheaper options have equivalent safety and efficacy. +1 (804) 915-0195 The move arrives amidst the greater issue of payers continuing to struggle with Andy Dixon rising drug prices. A link to the article can be found here. (A subscription to the Director Wall Street Journal may be required) [email protected] +1 (415) 217-3419 Paul Hepper Director [email protected] MEDICAID| CALIFORNIA’S PLAN TO CARVE IN COMPLEX CHILDREN +1 (804) 932-1326 We continue our review of children making the healthcare news as California Whit Knier Director announced its plan to carve in its California Children’s Services (“CCS”) program [email protected] into Medi-Cal managed care. This is not, however, the first controversial case of +1 (804) 932-1321 traditional fee-for-service populations being brought into managed care. Several populations, including the elderly, disabled and other child populations have been Jacques Fu highly contested nationwide. On one hand, there are benefits to a system Vice President [email protected] whereby a patient who sees a variety of specialists and physicians would benefit +1 (804) 915-0185 by being cared for under a single plan. The controversy lies in whether the plans themselves provide adequate coverage and are equipped to deal with the most Andy Hewlett acute (and high-cost) populations. For now, California’s legislature will review a bill Vice President to slow down the planned transition until further analyses can be completed. A [email protected] link to the article in the Kaiser Health News can be found here. +1 (415) 217-3427 Bill Kayser Vice President [email protected] +1 (804) 915-0180 Nick Owens Vice President [email protected] +1 (804) 887-6027 www.harriswilliams.com PAGE | 1 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015 PUBLIC MARKETS OVERVIEW Key Trading Statistics (detail begins on page 6) Median TEV/ Median TEV/ Number of Aggregate Sector Enterprise Value Change in Stock Price LTM Multiples Forward Mulitples Companies ($ mm) 3 mos. 12 mos. Revenue EBITDA Revenue EBITDA Clinical Laboratories 3 $34,493 6.5% 22.8% 1.9x 11.0x 1.9x 10.5x Contract Pharma Manufacturing 3 12,297 12.4% 46.9% 3.9x 16.8x 3.6x 13.9x Contract Research Organizations 9 $40,310 17.1% 39.7% 3.0x 15.2x 3.0x 14.0x Disease Management 2 8,181 (12.4%) (2.6%) 1.9x 14.1x 1.9x 11.9x Emergency Services 1 $2,171 (13.8%) (21.6%) 2.1x 8.3x 2.1x 8.0x Healthcare Staffing 5 20,912 13.9% 41.9% 1.4x 17.5x 1.4x 14.0x HMO - Medical 10 $320,462 9.1% 51.4% 0.8x 10.0x 0.8x 9.7x Services Information Services 14 45,002 2.5% 21.5% 5.6x 20.4x 4.8x 17.2x Specialty Managed Care 3 $8,648 21.4% 17.7% 1.2x 9.9x 7.6x 6.4x Specialty Pharmacy 1 2,736 28.9% NM 1.0x NA 1.0x NM Retail Pharmacy 3 $269,870 15.6% 40.5% 0.9x 12.6x 0.9x 13.0x Payor, Provider, Support & Pharmacy Specialty Pharmacy Management 2 78,224 11.7% 28.0% 0.7x 10.6x 0.7x 10.3x Dental Products 3 $113,971 11.6% 22.6% 3.2x 15.6x 3.3x 14.7x Durable Medical Equipment 3 11,965 (9.4%) 13.9% 1.9x 14.7x 1.9x 13.4x Life Sciences Tools 4 $131,176 4.5% 14.8% 3.0x 14.6x 3.7x 15.7x Devices Medical Devices and Products 15 677,676 5.3% 25.7% 3.7x 14.9x 3.7x 14.0x Products &Products Medical / Surgical / Dental Supplies & Distribution 6 $131,910 2.5% 22.9% 0.3x 13.0x 0.3x 11.2x Acute-Care Hospitals 4 116,882 14.1% 19.1% 1.2x 8.6x 1.1x 8.0x Assisted Living 3 $14,165 (8.6%) (4.4%) 3.0x 15.9x 2.5x 13.6x Diagnostic Imaging 3 9,714 (20.2%) 4.8% 1.7x 8.9x 1.9x 9.8x Dialysis Services 2 $60,082 (2.8%) 15.0% 2.0x 11.0x 2.0x 10.6x Home Care, Hospice, and Home Infusion 6 6,344 29.8% 66.0% 1.4x 13.7x 1.4x 12.3x Long-Term Care 3 $7,125 (0.2%) 15.0% 1.0x 11.2x 0.8x 8.7x Physician Practice Management 2 10,188 18.9% 39.7% 3.3x 15.4x 3.1x 14.5x Behavioral Health / Management 6 $30,565 13.6% 27.5% 1.6x 10.8x 1.5x 10.1x Provider-Based Services Provider-Based Surgicenters / Rehabilitation 5 18,661 5.3% 27.3% 2.2x 13.0x 2.0x 11.0x Payor, Provider, & Pharmacy Support Services 56 $843,307 10.9% 42.9% 1.5x 13.1x 1.4x 12.0x Products & Devices 31 $1,066,698 3.0% 14.6% 3.5x 14.1x 3.3x 12.9x Provider-Based Services 34 $273,726 11.1% 27.7% 2.1x 11.6x 2.0x 10.7x HW&Co. HCLS Composite Index 121 $2,183,731 6.8% 23.8% 2.6x 13.5x 2.5x 12.4x S&P 500 0.9% 9.0% Public Company Sector Performance (12-month % change in stock price) Home Care, Hospice, and Home Infusion HMO - Medical Contract Pharma Manufacturing Healthcare Staffing Physician Practice Management Contract Research Organizations Specialty Pharmacy Management Behavioral Health / Management Surgicenters / Rehabilitation Medical Devices and Products HW&Co. HCLS Composite Index Medical / Surgical / Dental Supplies & Distribution Clinical Laboratories Dental Products Information Services Acute-Care Hospitals Specialty Managed Care Long-Term Care Dialysis Services Life Sciences Tools Durable Medical Equipment S&P 500 Diagnostic Imaging Specialty Pharmacy Disease Management Assisted Living Emergency Services (40.0%) (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% PAGE | 2 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015 EQUITY MARKETS OVERVIEW Healthcare & Life Sciences Industry Stock Performance 220 203.5% 200 180 169.9% 160 152.5% 140 120 100 80 60 40 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 S&P 500 Dow Jones U.S. Health Care Index HW&Co. HCLS Index Top 25 Equity Offerings (by proceeds) Closing Date Issuer Ticker Transaction Type Gross Proceeds ($ mm) 07/29/15 Adeptus Health Inc ADPT Follow-On $410.6 07/22/15 Radius Health Inc RDUS Follow-On 345.0 07/08/15 Clovis Oncology Inc CLVS Follow-On 316.3 07/15/15 Ultragenyx Pharmaceutical Inc RARE Follow-On 303.6 07/27/15 NantKwest Inc NK IPO 238.3 07/30/15 AMAG Pharmaceuticals Inc AMAG Follow-On 230.9 07/09/15 Atara Biotherapeutics Inc ATRA Follow-On 207.0 07/01/15 Natera Inc NTRA IPO 180.0 07/21/15 Dynavax Technologies Corp DVAX Follow-On 143.8 07/23/15 Exelixis Inc EXEL Follow-On 135.0 07/14/15 MacroGenics Inc MGNX Follow-On 130.4 07/29/15 vTv Therapeutics Inc VTVT IPO 117.2 07/15/15 Chiasma Inc CHMA IPO 117.1 07/07/15 K2M Group Holdings Inc KTWO Follow-On 101.7 07/29/15 Zogenix Inc ZGNX Follow-On 98.3 07/28/15 Egalet Corp EGLT Follow-On 86.3 07/22/15 Neos Therapeutics Inc NEOS IPO 82.8 07/29/15 Cara Therapeutics Inc CARA Follow-On 80.5 07/29/15 Genocea Biosciences Inc GNCA Follow-On 50.1 07/16/15 Synthetic Biologics Inc AEN Follow-On 46.0 07/17/15 TrovaGene Inc TROV Follow-On 40.3 07/17/15 Discovery Laboratories Inc DSCO Follow-On 35.0 07/09/15 TherapeuticsMD Inc TXMD Follow-On 30.0 07/21/15 CytRx Corp CYTR Follow-On 28.8 07/09/15 Anthera Pharmaceuticals Inc ANTH Follow-On 28.8 PAGE | 3 HEALTHCARE & LIFE SCIENCES INDUSTRY UPDATE │ AUGUST 2015 M&A OVERVIEW Announced Healthcare & Life Sciences M&A QUARTERLY HEALTHCARE TRANSACTION M&A ACTIVITY HIGHLIGHTS 350 Announced Target Buyer 13 7/31/2015 Geritrex Corporation BelHealth Inv estment Partners, LLC 18 22 11 300 22 14 15 7/22/2015 Ingenios Health Co.
Load more

Recommended publications
  • Healthcare It Industry Update │ Q3 2016
    HEALTHCARE IT INDUSTRY UPDATE │ Q3 2016 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 IT INDUSTRY UPDATE | Q3 2016 HEALTHCARE IT PRACTICE OVERVIEW CONTENTS INTRODUCTION . WHAT WE’RE READING Harris Williams & Co. is pleased to present our review of Q3 Healthcare IT . KEY HEALTHCARE MACRO activity. This report provides commentary and analysis on current capital market INDICATORS trends and merger and acquisition dynamics within the Healthcare IT industry. PUBLIC MARKETS . PUBLIC COMPARABLES We hope you find this edition helpful and encourage you to contact us directly if . M&A ACTIVITY you would like to discuss our perspective on current industry trends and M&A . PRIVATE PLACEMENT ACTIVITY opportunities or our relevant industry experience. IPO ACTIVITY OUR PRACTICE CONTACTS Sam Hendler Harris Williams & Co. is a leading advisor to the Healthcare IT industry. Our global Managing Director practice includes professionals across the firm from Harris Williams & Co.’s [email protected] Technology, Media & Telecom Group and Healthcare & Life Sciences Group. +1 (617) 654-2117 Jeff Bistrong HW&Co. Healthcare IT Taxonomy Managing Director [email protected] +1 (617) 654-2102 . Patient-Facing Solutions Mike Wilkins . Care Delivery: Managing Director Operational Efficiency [email protected] +1 (415) 271-3411 . Care Delivery: Clinical / Acute Thierry Monjauze Managing Director . Care Delivery: [email protected] Clinical / Non-Acute +44 20 7518 8901 CARE DELIVERY EMPLOYERS ORGANIZATIONS PATIENTS .
    [Show full text]
  • This Is the 19Th Annual Sohn Investment Conference. the First
    This is the 19th Annual Sohn Investment Conference. The first time Ispoke here was in 2002. It is amazing how this great event has grown, and I am honored to be here. 1 2 A couple weeks ago, we wrote in our quarterly letter that we believe that a narrow group of cool kid stocks have disconnected from traditional valuations and formed a bubble. This got a lot of criticism. Half the critics thought we were talking our book, even though we didn’t name names. The other half were upset that we didn’t tell them which stocks we were short. Since we can’t seem to please anybody, I’ve decided to validate both criticisms. Today, I’m going to illustrate the bubble basket doing a deep dive into one of the companies, while not disclosing the others. This company is an excellent company with an excellent product, run by a well‐meaning and honest, though occasionally promotional CEO. The world may be a better place if it succeeds, and even though we are short, I am in no way rooting for it to fail. Its main problem is that it isn’t positioned to succeed the way the bulls hope, as the assumptions the bulls are making are not plausible. The stock is simply at the wrong price. It’s caught up in a bubble and could easily fall 80% or more from its recent peak. Let me introduce you to athenahealth. 3 I think athena deserves a smaller capitalization, and I’m not just referring to how it fails to capitalize the first letter of its name.
    [Show full text]
  • Athenahealth Master Services Agreement Third Party Terms
    ATHENAHEALTH MASTER SERVICES AGREEMENT THIRD PARTY TERMS secrets. Client shall hold in confidence and take reasonable measures, but PART 1 - GENERAL TERMS AND CONDITIONS. not less than the measures taken by Client to safeguard its own confidential The following Third Party Terms apply to all Athena sublicenses of information, to safeguard and prohibit access to, and copying or disclosure Third Party Items (as defined in the Athenahealth Master Services of, any and all confidential information and materials provided hereunder, Agreement) to Client pursuant to agreements that Athena has made with its including, but not limited to, confidential information in or about the Third third party licensors (“Third Party Licensors”): Party Items, any updates to any of them and any user manuals for them. A. Client will not modify the Third Party Items or the substance of the M. IN NO EVENT SHALL ATHENA OR A THIRD PARTY LICENSOR data contained therein. (OR ITS SUPPLIERS), OR THEIR RESPECTIVE OFFICERS, DIRECTORS, PARTNERS OR EMPLOYEES, BE LIABLE TO CLIENT OR ANY OTHER B. Except as authorized by the applicable Third Party Licensor or as PARTY FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, permitted under Part 2 herein, Client will not use any Third Party Item (or any EXEMPLARY, PUNITIVE, RELIANCE OR SPECIAL DAMAGES, OR ANY data derived from it) in a computer service business or in network, time- LOSS OF USE, DATA OR, BUSINESS, PROFITS, ARISING OUT OF OR IN sharing, multiple-CPU or multiple-user arrangements (including the Internet CONNECTION WITH (1) THE USE OR PERFORMANCE OF THE THIRD and Intranets), or link or interface them with any other equipment, software, PARTY ITEM; (2) THE INTERRUPTION OF BUSINESS, DELAY OR data, network or communications system except in and as part of INABILITY TO USE ANY THIRD PARTY ITEM, RELATED EQUIPMENT OR athenaNet®.
    [Show full text]
  • 3Rd Quarter 2014 FINAL BOOK
    SCOTT-MACON HEALTHCARE REVIEW: THIRD QUARTER 2014 Third Quarter 2014 Healthcare Review 2 Healthcare Overview, Mean Revenue Multiples 5 Healthcare Overview, Mean EBITDA Multiples 6 Analysis of Selected Healthcare 7 Merger and Acquisition Transactions July 1—September 30, 2014 Analysis of Selected 30 Publicly-Traded Healthcare Companies CONTENTS SCOTT-MACON Healthcare Investment Banking 2 THIRD QUARTER 2014 HEALTHCARE REVIEW Dear Clients and Friends, Scott-Macon is pleased to present our quarterly mens’ healthcare IT business for $1.3 billion; and Bob Healthcare Review covering the third quarter of 2014. If Patricelli’s Evolution1 has been sold to payments con- you haven’t done so already, please email me at ncor- glomerate WEX for 6.0x revenues. Other interesting tech- [email protected] to automatically continue receiv- nology deals include giant Allscripts picking up Oasis in ing our publications in the future as we are transitioning to the EHR space; Google acquiring telehealth player Lynx digital publishing with email distribution. Design; Premier announcing two more deals for Aperek Pages five and six represent a visual snapshot of and TheraDoc; and Sunquest owner Roper closing on the average multiples for all of the healthcare, medical Strategic Healthcare Programs. Turning to the Outsourc- and pharmaceutical transactions that either closed or were ing segment, clinical services giant Sheridan Healthcare announced during the third quarter, along with the average was acquired by AmSurg for $2.4 billion, representing multiples for the major publicly-traded healthcare, medi- 2.5x revenues. Point-of-care diagnostics leader Alere an- cal and pharmaceutical companies. nounced it is in talks for a sale to an investor group for Beginning on page 7 we present the mergers and $7.8 billion, or 2.6x revenues.
    [Show full text]
  • A Survey of U.S. Healthcare IT Industry Landscape
    July 28, 2016 Industry Research Department, Mizuho Bank Mizuho Industry Focus Vol. 183 A Survey of U.S. Healthcare IT Industry Landscape Global Corporate Advisory Americas Tim Wang, CFA, 2016 [email protected] 〈Summary〉 ○ U.S. Healthcare IT industry is booming. Over the recent years, many companies have had robust growth and the sector has attracted huge inflow of private and public investments. There are many types of HCIT companies, operating with different business models and participating in various segments of HCIT. In this report, we try to first identify the drivers behind HCIT growth and then delineate the dynamics in each HCIT segment. ○ Key drivers of HCIT are also the underlying drivers of the U.S. healthcare system, namely Obamacare, the transition to value-based reimbursement model, rising consumerism, industry consolidation, etc. Within HCIT, major drivers include the HITECH Act, advancement of technology, and the convergence of healthcare, IT, and consumer industries. ○ The booming HCIT market is in transition. Incentives for EHR created by the HITECH Act have largely run their course. In the future, the marketplace will be driven less by government subsidies and more by private spending. To earn revenues from private payers, HCIT companies increasingly need to demonstrate the clinical and financial value of their offerings. To achieve this, HCIT companies need to collaborate closely with their customers. ○ For the various HCIT segments, we see three especially promising areas – integration of remote patient monitoring either through wearables or other devices with data analytics and intervention capabilities; big data analytics by Artificial Intelligence; and telemedicine. We expect stable growth for RCM, PM, payer solution segments.
    [Show full text]
  • 2015 HEALTHCARE TECH PURCHASING Market Share, Mindshare, and Renewal Research and Report Provided by Reactiondata Table of Contents
    2015 HEALTHCARE TECH PURCHASING Market Share, Mindshare, and Renewal research and report provided by ReactionData Table of Contents Introduction 5 About Industry Insights 6 2015 Purchases 7 Purchase Intention By Hospital Size 8 EHR 13 EHR Market Share 14 GE Healthcare 18 Epic 24 MEDHOST 26 EHR Renewal 28 Data Analytics 29 Data Analytics Market Share 30 McKesson 34 Data Analytics Mindshare 36 Data Analytics Renewal 40 Patient Engagement 41 2015 HEALTHCARE TECH PURCHASING | 2 Patient Engagement Market Share 42 Patient Engagement Mindshare 46 Allscripts 50 Patient Engagement Renewal 52 Population Health Management 53 Population Health Management Market Share 54 Population Health Management Mindshare 58 The Advisory Board 59 Population Health Management Renewal 64 Revenue Cycle Management 65 RCM Market Share 66 MedAssets 70 RCM Mindshare 71 RCM Renewal 75 Data Security 76 Data Security Market Share 77 Data Security Mindshare 81 Data Security Renewal 85 2015 HEALTHCARE TECH PURCHASING | 3 ICD-10 Migration 86 ICD-10 Migration Market Share 87 ICD-10 Migration Mindshare 91 ICD-10 Migration Renewal 95 Conclusion 96 Appendix A 97 Survey Participants by Role 97 Appendix B 98 3M 98 Cerner 98 CPSI 98 eClinicalWorks 98 MEDITECH 99 Appendix C 100 Participating Facilities 100 2015 HEALTHCARE TECH PURCHASING | 4 Introduction US healthcare providers are poised to spend billions in 2015 on information technology. The jobs, promotions, and bonuses of many healthcare professionals depend upon a few key questions. • Where will this money be spent? • Which vendors are poised to gain market share? • Who is poised to miss out? Over a recent three week period, we used our enterprise data platform (Reaction) to find out.
    [Show full text]
  • Cerner Corporation 2015 Annual Report at the Center of Everything We Do Stands Our Commitment to Improve Health and Care for the Individual
    Cerner Corporation 2015 Annual Report At the center of everything we do stands our commitment to improve health and care for the individual. We design our technologies to be open, scalable and data-driven. And through our global relationships, we create healthier stories of improved care, lowered costs, increased safety, aligned priorities, long-term value and changed lives – for the organization, the community, the individual and grandfathers and granddaughters. Cerner Corporation 2015 Annual Report Table of Contents: Annual Report 2015 Board of Directors . 2 Leadership . 3 Cerner’s Long-Term Performance . .4 Letter to Our Shareholders, Clients and Associates . 5 Appendix: Reconciliation of 2015 Non-GAAP Results to GAAP Results . 14 Form 10-K . 15 Business and Industry Overview . 18 Risk Factors . 26 Properties . 38 Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities . 40 Selected Financial Data . 41 Management’s Discussion and Analysis of Financial Condition and Results of Operations . 42 Quantitative and Qualitative Disclosures About Market Risk . 55 Controls and Procedures . 55 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . 58 Exhibits and Financial Statement Schedules . 59 Reports of Independent Registered Public Accounting Firm . 64 Consolidated Balance Sheets . 66 Consolidated Statements of Operations . 67 Consolidated Statements of Comprehensive Income . 68 Consolidated Statements of Cash Flows . 69 Consolidated Statements of Changes in Shareholders’ Equity . 70 Notes to Consolidated Financial Statements . 71 Basis of Presentation, Nature of Operations and Summary of Significant Accounting Policies . 71 Business Acquisitions . 77 Investments . 81 Fair Value Measurements . 82 Receivables . 83 Property and Equipment .
    [Show full text]
  • Healthcare Services: Healthcare IT Services Insights
    January 2013 Healthcare Services: Healthcare IT Services Insights 2013 Outlook — Focus on Data Analytics Background too soon for the US healthcare system. pressure on federal and state budgets, In 2009 healthcare providers began to make Healthcare is a data-intensive endeavor and employers’ income statements and household their first healthcare IT investments in the wise application of technology to analyze income making the cost trend unsupportable; anticipation of receiving the incentives and data is among the best tools available to and iii) with the enactment of the Affordable avoiding the penalties for achieving improve efficiencies and manage risk in Care Act (the “ACA”), 20 million people Meaningful Use as prescribed by the order to ensure delivery of quality care to an poised to enter the market with coverage at American Recovery and Reinvestment Act of increased population of insured in the face the lowest level of reimbursement. A 2009 (“ARRA”). According to the CMS, as of budget constraints and payment reforms. revolution is underway in which payers of November 2012, about $9.3 billion in — governments, employers and consumers While the macro factors driving trends in the electronic health record (EHR) incentive — are overthrowing the old regime of sector are well known, they are so profound payments had been made to 173,168 fee-for-service and forcing risk-bearing that they bear repeating: i) a multi-decade professionals and 3,393 hospitals. The reimbursement models such as bundled trend of healthcare expenditures rising faster ARRA may or may not have spurred payments, value based purchasing, than GDP, as a result of an aging population recovery, but it certainly stimulated accountable care and readmission penalties and increases in cost of care; ii) extreme reinvestment in healthcare IT, perhaps none onto providers.
    [Show full text]
  • Healthcare & Life Sciences Industry Update
    Healthcare & Life Sciences Industry Update August 2013 Member FINRA/SIPC www.harriswilliams.com What We’ve Been Reading August 2013 • According to an article in The Wall Street Journal, the state health insurance exchanges being implemented as part of the Patient Protection and Affordable Care Act (“PPACA”) will likely restrict patients’ access to physicians and providers. According to the article, most of the health insurance plans offered on the state health exchanges will be structured as health maintenance organizations (“HMOs”). These plans are characterized by relatively few choices of healthcare providers and impose systems of approvals and referrals before a patient can access more expensive forms of care. Furthermore, the plans often do not include some of the largest hospitals and health systems, who often cost more than smaller healthcare providers. As a result, many patients who elect to purchase health insurance on state exchanges will experience a significant change in access. (A subscription to The Wall Street Journal Online may be required) • On July 30, Community Health Systems (NYSE:CYH) announced that it would acquire Health Management Associates (HMA) for approximately $3.9 billion, offering $10.50 in cash and 0.0692 CYH shares for each HMA share. The combination would generate one of the largest U.S. hospital companies with 206 locations. The deal is expected to create $150 to $180 million in annual synergies. Health reform has driven a number of large, recent M&A transactions in the hospital sector, including the purchase of Vanguard Health by Tenet in late June for $1.7 billion, reflecting an effort by acquirors to gain scale.
    [Show full text]
  • JJ Part a Approved 5010 Errata Vendors
    JJ Part A Approved 5010 Errata Vendors Vendor Contact Vendor Name Website Contact Address Contact Name Contact Email Specifics Phone 2K Medical Billing Systems https://www.2kmedicalbilling.net ERA, EMC, 105 West Torrance Blvd, Bryan Bigbee 877-373- [email protected] #106, 2227 Redondo Beach, CA 90277 911 Billing Services & https://www.911billing.net ERA, EMC P.O Box 589 Linda Basham 270-824- [email protected] Consultant, Inc Madisonville, KY 42431 8123 ABILITY, an Inovalon https://www.abilitynetwork.com/ 100 N. 6th Street, Suite 900A Customer 888-895- [email protected] Company Minneapolis, MN 55403 Service 2649 Acadiana Computer Systems, https://www.acsmd.com EMC 324 Dulles Drive John Freyou 800-375- [email protected] Inc. Lafayette, LA 70506-3008 2271 Access Care Management ERA, EMC 182 Industrial Road Deborah Helm 713-235- [email protected] Service Glen Rock, PA 17327 0181 Accumed Technology https://www.accu-med.com ERA, EMC 300 Technecenter Drive, April Caldwell 800-777- [email protected] Solutions Suite A 9141 Milford, OH 45150 Advanced Answers On ERA, EMC 8100 N. University Dr. Customer 954-724- [email protected] Demand Fort Lauderdale, FL 33321 Support 9809 Advanced Data Systems Corp https://www.adsc.com/ ERA, EMC Medics Premier/Medics Elite Marc Klar 800-899- [email protected] Paramus, NJ 07652 4237 Advanced Medical Billing & ERA, EMC 3021 Highway 45 Bypass, Shelby Owens 731-660- [email protected] Consultants Suite 104 2665 Jackson, TN 38305 Advantage Billing Solutions ERA, EMC P.O. Box 2165 Carrie Goss 276-794- Lebanon, VA 24266 7935 Advocate Radiology Billing https://www.radadvocate.com ERA, EMC 10567 Sawmill Parkway, Suite Scott Savelson 614-210- [email protected] 100 1885 Powell, OH 43065 Affiliated Professional Service https://affilprof.net/ ERA, EMC 2527 Cranberry Highway Meg Vaughn 508-295- [email protected] Wareham, MA 02571 7271 Affordable Medical Billing ERA, EMC 4700 Amber Falls Andrea Harris 678-549- [email protected] McDonough, GA 30252 7570 Aim Systems ERA, EMC 14573 W.
    [Show full text]
  • Presentation Main Title
    THOMASTEAM TOBIN |MEMBER MANAGING DIRECTORONE | @HedgeyeHCTEAM MEMBER THREE ANDREW FREEDMAN | ASSOCIATE | @ HedgeyeHIT ALEX ROSSTEAM | ANALYST MEMBER TWO TEAM MEMBER FOUR © Hedgeye Risk Management LLC All Rights Reserved DISCLAIMER DISCLAIMER Hedgeye Risk Management is a registered investment advisor, registered with the State of Connecticut. Hedgeye Risk Management is not a broker dealer and does not provide investment advice for individuals. This research does not constitute an offer to sell, or a solicitation of an offer to buy any security. This research is presented without regard to individual investment preferences or risk parameters; it is general information and does not constitute specific investment advice. This presentation is based on information from sources believed to be reliable. Hedgeye Risk Management is not responsible for errors, inaccuracies or omissions of information. The opinions and conclusions contained in this report are those of Hedgeye Risk Management, and are intended solely for the use of Hedgeye Risk Management’s clients and subscribers. In reaching these opinions and conclusions, Hedgeye Risk Management and its employees have relied upon research conducted by Hedgeye Risk Management’ s employees, which is based upon sources considered credible and reliable within the industry. Hedgeye Risk Management is not responsible for the validity or authenticity of the information upon which it has relied. TERMS OF USE This report is intended solely for the use of its recipient. Re-distribution or republication of this report and its contents are prohibited. For more details please refer to the appropriate sections of the Hedgeye Services Agreement and the Terms of Use at www.hedgeye.com © Hedgeye Risk Management LLC.
    [Show full text]
  • 5010 Approved Vendors
    5010 APPROVED VENDORS Transaction Vendor Name Phone Email TPID Type 1 REX INC (817)531-8992 [email protected] CH00178 835 (5010A1) 1 REX INC (817)531-8992 [email protected] CH00178 837P (5010A1) 1 STOP MEDICAL BILLI (909)315-8267 [email protected] 600041 837P (5010A1) 1 STOP MEDICAL BILLI (909)315-8267 [email protected] 600041 276 (5010) 1 STOP MEDICAL BILLI (909)315-8267 [email protected] 600041 835 (5010A1) 121 Rehab Physical Therapy Corp. (626)962-5035 [email protected] BS105440 276 (5010) 1st Choice IT (818)986-9552 [email protected] CH00695 276 (5010) 1ST CHOICE MEDICAL BILLING (702)396-8834 [email protected] BS00170 835 (5010A1) 1ST CHOICE MEDICAL BILLING (702)396-8834 [email protected] BS00170 276 (5010) 1ST CHOICE MEDICAL BILLING (702)396-8834 [email protected] BS00170 837P (5010A1) 1st Priority Billing Solutions (479)751-6828 [email protected] BS02760 276 (5010) 1st Providers Choice (303)779-3340 [email protected] BS01657 276 (5010) 21ST CENTURY MEDICAL (626)975-0000 N/A 504162 837P (5010A1) 21ST CENTURY MEDICAL (626)975-0000 N/A 504162 276 (5010) 360 Medical Billing Solutions (844)813-1749 [email protected] BS03509 276 (5010) 808 MEDICAL BILLING LLC (808)203-7943 [email protected] BS00905 835 (5010A1) 808 MEDICAL BILLING LLC (808)203-7943 [email protected] BS00905 276 (5010) 808 MEDICAL BILLING LLC (808)203-7943 [email protected] BS00905 837P (5010A1) A & J BILLING (831)639-0000 N/A B00000015 837P (5010A1) A & J BILLING (831)639-0000 N/A B00000015 276 (5010) A & J
    [Show full text]