Healthcare mergers and acquisitions are active, but healthcare executives also are cautious with uncertainty surrounding health reform and national healthcare policy discussions, according to analysts at the Nashville Health Care Council on Tuesday.
Despite the caution, the analysts expect a lot of healthcare M&A activity involving private equity firms, healthcare IT companies and telemedicine, HealthcareFinanceNews reported.
"Opportunities for mergers and acquisitions are ripe as the healthcare industry changes to react to price pressure, payment reform and the need for new capabilities," J.P. Morgan Managing Director Ravi Sachdev told the audience. "Considering these factors, the growth in hospital M&A is not surprising, given the need for facilities to be more efficient in the face of anticipated reimbursement cuts and, of course, reform."
The analysts also cited innovation and creativity as ways to overcome challenging market conditions to hospital mergers and acquisitions.
Their outlook echoed sentiments from Sanford Steever, editor of "The Health Care M&A Report" by research publisher Irving Levin Associates, who said last month that the M&A market for healthcare is alive and thriving. However, Steever noted that increased scrutiny from the Federal Trade Commission could make hospitals more wary of deal making, FierceHealthcare previously reported.