Capital Finance
Around the country, physicians are starting private practices every day. And the economics work if the practice is constructed correctly -- paying for itself and earning equal-to or greater-than that of an employment model.
Nonprofit hospitals posted their second straight year of revenue declines in 2013 and their dismal rate of revenue growth broke records, according to a Moody's Investors Service report released this week.
Although the census of private practices has contracted, practice buyers -- including physicians, medical groups and private equity groups -- are driving continued deal activity in this space. Here's what you need to know if you are considering a purchase or a sale.
Attitudes toward healthcare financing have been fairly conservative ever since the general economy collapsed with the stock market in 2008, but opportunities are opening up.
Early-stage investment in private companies used to be reserved for wealthy industry players, but in recent years it has become more common for mainstream healthcare investors to find early-stage investment opportunities. But while easier to find, the underlying risks of private investments has not changed.
Radiology reimbursement continues to drop, but healthcare providers often can achieve significant savings off the quoted vendor price for CT systems. Keys to finding savings include creating a strong, united team approach and determining what service coverage is best for a particular CT scanner.
Although there are some indications of a possible lull, hospital systems are still buying up private physician practices at a high rate. With that come concerns about maintaining the revenue cycle during transition, but there are steps hospitals can take to smooth the process.
Tenet Healthcare is seeing its situation improve, with growth in key metrics, more favorable payer contracts and a burgeoning services business unit.
As integrated healthcare becomes a central goal, the time may be ripe for mergers and acquisitions to get more interesting.
Analysts who fear health spending is accelerating got plenty of evidence in Wall Street's second-quarter results to support their thesis. But so did folks who hope spending is still under control.