Noted M+A Expert Criticizes TrumpCare on Bloomberg Radio
TUCSON, Ariz., Jan. 19, 2017 /PRNewswire-USNewswire/ -- Last Friday, January 13th, Bloomberg Radio interviewed Dr. Tom Schramski, Founder of international healthcare M+A firm VERTESS. Responding to questions about the potential impact of TrumpCare from "Taking Stock" Anchor, Carol Massar, Dr. Schramski explained that:
- The TrumpCare approach is unnecessarily increasing the anxiety of owners and executives in the healthcare marketplace by focusing on the ills of Obamacare rather than what is essential for value-based, cost effective services and products for everyone that need them. Providers understand the need to innovate and they are looking for partners, not accusation and demagoguery.
- Some of the solutions proposed by TrumpCare at the Federal level, especially block grants to artificially control healthcare expenses, were largely abandoned several decades ago because they were a disaster and led to attempts to ration, and even deny care, without consistent guidelines.
- Providers of healthcare are a very diverse group that try their best to respond to a complex array of requirements and reimbursement challenges. TrumpCare has the potential to needlessly create chaos in the healthcare arena, especially at the state level where both Republicans and Democrats have concerns given Medicaid expansion that has allowed millions to access quality service, without relying on emergency rooms for primary care.
- Healthcare M+A activity will likely increase in 2017 given the evident market turbulence. An example is the recent acquisition of Surgical Care Affiliates by United Healthcare where insurers are more directly attempting to be the providers themselves. The impact will be most pronounced in the lower middle market where competition will be heightened.
Dr. Schramski recommends three actions by healthcare owners and executives to strengthen their position regardless of how TrumpCare evolves:
- Remain Alert. Once things start happening, they'll happen very quickly. You'll want to stay atop the news for the healthcare industry in general and your segment in particular. SalientValue, the VERTESS biweekly blog of healthcare industry insights can be subscribed at http://vertess.com.
- Become More Flexible. To become more agile, you must fully understand your business--especially your financial and operational strengths and weaknesses.
- Focus on Building Sustainable Value. Regardless of what happens, the healthcare companies that focus on the basics will perform better than those that neglect them.
You can find a podcast of the Bloomberg interview at http://bit.ly/BBGmkts.
Dr. Schramski is a former healthcare executive, Licensed Psychologist and Founder/Managing Partner of VERTESS, a leading healthcare M+A firm. For further interviews and information, he can be reached at [email protected] and 520.975.5347.
About VERTESS
VERTESS is an international healthcare-focused M + A advisory firm with expertise in diverse healthcare and human service verticals, ranging from behavioral health and intellectual/developmental disabilities to DME, home care/hospice, urgent care, life sciences and other specialized services and products.
VERTESS is headquartered in Tucson, Arizona, with additional offices in Phoenix, Dallas/Ft. Worth, New York and Mexico City. For more information visit www.vertess.com.
SOURCE VERTESS
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