Healthcare Subsector Headwinds and Tailwinds

Across the Table

It’s too early to speculate how companies in the healthcare industry will weather the current crisis as the world is still in the trenches of the pandemic. While companies are going to rebound and bounce back more robust than ever, some may not be as successful. And, with M&A transactions still on the horizon, investors remain vigilant for valuable acquisitions in the health services industry.

In this episode of Across the Table, hosts Amber Walsh and Geoff Cockrell speak with Ryan Loehr, director at AMB, about the factors that create headwinds and tailwinds, and affect a healthcare company’s stature post-pandemic. Trends investors are closely monitoring include geographic locations and how the states have rolled out regulations – such as stay-at-home policies – and how locales are easing these restrictions.

He also discusses the telehealth industry in great detail, including issues surrounding it in the reimbursement space. Although it is not a new concept, more are seeing the value and efficiency this provides patients and consumers. They also talk about elective medical procedures and other services provided in hospitals and how the current crisis will impact these offerings in the long run.

Ryan, Amber, and Geoff also highlight the healthcare service providers with the greatest chance of thriving during the pandemic. These providers have a nominal risk for exposure to the virus, while still meeting patient needs.

As the ultimate effects and impacts remain on the horizon, it is certain M&A transactions will continue, notably in the healthcare industry.

Episode highlights

• Location as a factor 01:42
• Telehealth industry 03:55
• Telehealth fraud 07:37
• Reimbursement issues 08:17
• On elective medical procedures 09:57
• Lost demand for certain procedures 13:03
• Impact of the benefits provided by employers 15:20
• Impact on services done in hospitals 17:06
• On distressed acquisitions 18:51
• Health services providers that can thrive 20:41
• Other factors and challenges 24:07

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