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. Nearly half of individuals covered by employer-sponsored health plans have a high deductible plan, or HDP. Of those individuals, ... READ MORE >
Health Care
From hospital systems to home care providers, the health care sector is replete with middle market companies. The health needs of an aging population assure that this industry will continue to grow in coming years.
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. When I discuss the new accounting standard with ratings agencies ... READ MORE >
Want a fuller picture of biotech’s promise? Look beyond the public markets
A recent Wall Street Journal article highlights the underperformance of the Nasdaq Biotech Index against other benchmarks. The article implies the weak returns are due to a lack of blockbuster biotech therapies; at the same time, the piece underscores the robust private funding activity within the biotech ecosystem. The ecosystem and the capital markets in ... 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. Several bond deals issued in the first few months of 2019 have seen significant over-subscription, signaling more ... 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. The panel discussion, entitled “Financing the Deal,” was hosted by The Nashville Health Care Council, and featured representatives from four private equity ... READ MORE >
Time to get real on GDP and gasoline prices–read The Real Economy
In this issue of The Real Economy, RSM Chief Economist Joe Brusuelas reviews leading indicators of economic activity as the United States heads into the late innings of this current business cycle. He also examines the impact of rising gasoline prices, which are pinching consumers' wallets just in time for the holiday driving season. And our new ... READ MORE >
Why health systems are buying into schools to offset their labor shortage
Some health care systems are using acquisitions to install their own talent pipelines in response to a shortage of skilled labor. In March, HCA Healthcare Inc., the large, publicly traded national hospital system, acquired a majority stake in Galen College of Nursing, a for-profit nursing school. In April, another large health system, non-profit Atrium ... READ MORE >
Apple Heart Study should not dampen industry view of health tech
On March 16, Stanford researchers released results from the Apple Heart Study; this significant research project relied on data gleaned from some 420,000 adult Americans who agreed to wear an Apple Watch that monitored their cardiac rhythms to identify irregularities. The study, which used an iPhone app to enroll participants, left observers questioning ... READ MORE >
As telemedicine grows, a ‘digital front door’ lowers health-care costs
Telemedicine—like other industries where digitization of service has transformed an entire ecosystem—is dramatically changing health-care delivery. Many large integrated health systems view telemedicine as an opportunity to more affordably provide primary care. The technology allows patients to be examined virtually using two-way video conferencing for a ... READ MORE >
Health care adds 38,600 Jobs in February, but is that enough?
Recent employment releases, while generally positive, belie a systemic problem in the health care labor market: How will health systems, payers and other providers possibly find enough of the right people to deliver the care their patients expect? ADP released its February jobs report earlier on Wednesday. Health care services, which include providers, ... READ MORE >