As the potential for the coronavirus to become a pandemic looms, the outbreak is starting to affect the supply chains of critical industries across the globe. … READ MORE >
Is health care recession-proof?
Health care has long been viewed as a defensive sector compared to the broader market when a potential economic downturn is looming. There were sound reasons for this — many health care services had relatively inelastic demand and they were insulated from the effects of any global trade tensions. Today, … … READ MORE >
Scrutiny on private equity investment in health care increases
As private equity groups continue to invest in the health care industry, their business practices are falling under increasing scrutiny from lawmakers, researchers and the news media. … READ MORE >
Medical cost ratio is a growing concern among health insurers
Among the worrisome trends discussed on health insurers’ recent earnings calls is a growing medical cost ratio, or MCR, the percent of premium the insurer spends on claims and expenses that improves health care quality. It is sometimes referred to as a medical-loss ratio. … READ MORE >
Health care faces demand for pricing transparency
On June 24, the president signed an executive order designed to improve transparency in the pricing of health care. It’s the latest move in an environment where consumers are exercising power over the cost of treatment, an area that historically offered them little wiggle room. … READ MORE >
As consumers gain leverage, lower health care deductibles are forthcoming
Over the past decade, higher deductibles have become standard for the majority of health care plans in the United States. That standard could change, however, as consumers gain a louder voice in the health care value equation. … READ MORE >
Treatment of some leases under new FASB standard can result in balance sheet surprise
So-called embedded leases may not be the first thing you think of when considering the effects of ASU 2016-02 under the new FASB standard for lease accounting. But this much-anticipated new rule can provide a forcing mechanism for how your business treats leases tied to service contracts. … READ MORE >
Investors eye hospital revenue bonds in search of yield
Investors are eyeing higher-yield hospital revenue bonds amid bargain prices underscored by the 10-year US Treasury, which is priced at its lowest level since 2017. But health systems have not yet stepped up to issue more debt to meet demand. … READ MORE >
Health care deal outlook for 2019 good, despite slow start to year–panel
Health care deals are down to start 2019, but the outlook is good, largely due to of the amount of dry powder on the sidelines, a recent panel of private equity professionals noted earlier this month. … READ MORE >
Why health systems are buying into schools to offset their labor shortage
Recent tie-ups between health care systems and schools that provide medical training may signal the beginning of a trend within the health-care ecosystem — to remain competitive, providers must to boost their access to skilled labor by owning a piece of the talent pipeline or building programs that get them closer to it. … READ MORE >