Mergers and acquisitions activity in healthcare ranked third behind energy and media entertainment in terms of total deal volume in the first half of 2018. And from what we can tell, things didn’t slow down after that. Of course, you have the big deals like CVS-Aetna, Cigna-Express Scripts, and Amazon-Berkshire Hathaway-JP Morgan. And the much-hyped entrance from tech giants like Apple. But we’re also seeing a ton of consolidation in specialty practices, software companies and more. The rise of value-based payment is certainly a factor, but the market is complicated and there are many, less obvious factors at play.
On this episode, Amanda Hansen, Vice-President of Strategy and Business Development for AdvancedMD breaks down the M&A activity and industry trends to help us understand what’s happening, and why.
This episode is sponsored by VBP Forward:
VBP Forward will host its inaugural conference February 20-21, 2019 in Buffalo, NY at the Hyatt Regency Buffalo. The conference will bring together over 200 professionals who serve Medicaid and Medicare special needs or complex populations or have an interest in that value chain. Participants will gain insight into the next generation of value-
based payment and will be provided with a roadmap for their path towards effective value payment for special needs populations. In addition to clinical providers, VBP Forward will have a track and focus on guiding community-based organizations down the right path for the collection of social determinants of health and how they can become not only an integral part of care delivery but also the revenue cycle associated with that delivery.
1:22 What is AdvancedMD?
4:12 What happened with M&A in the second half of 2018 and how does that compare to years past?
6:05 Corporate needs that are driving consolidation.
9:06 Specialty care M&A is where the largest and highest quantity of deals are happening.
12:00 “Today more than ever [independent and small group specialists] can put different tools in their tool bag to compete against those larger hospital groups and health networks. They have technology that allows them to be the preferred place for patients and to build those personal relationships.”
15:30 “Who wants to go to a hospital to receive care?”
16:36 Where do you see primary care consolidation? Private equity vs. Hospitals
18:57 Is PE making smart investments or is it all FOMO? What does Amazon entering the market tell you?
22:00 How long will these trends continue?
25:22 What opportunities aren’t getting enough attention right now?
27:21 Lessons for sellers: “Growth is king.”
28:57 Reputation management is here to stay. Doctors are being compared whether they like it or not.
35:19 AdvancedMD is putting clinical, patient, and analytical solutions in the palm of your hand. Seriously, listen to these awesome mobile EHR features.
38:56 Real-time quality data that is unique to each specialty. New ways of measuring quality care are coming.
40:25 A better end-to-end claims experience, more consolidation on specialty EHRs, and more about AdvancedMD’s acquisition of NueMD.
42:37 You need an experienced EHR company that can keep up with and interpret regulatory changes. How do you account for reporting but do it in a way that doesn’t disrupt workflow?
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About Amanda Hansen
Amanda Hansen is the vice-president of strategy and business development for AdvancedMD. She is passionate about increasing operational effectiveness and profitability and driving continual growth while improving patient care and access to healthcare through innovative software solutions.
During Amanda’s 12-year tenure at AdvancedMD, she has held multiple positions in sales, service, finance and strategy which have yielded a host of professional accomplishments that can be seen in her job history. Hansen’s competitive edge, positive outlook and solution-oriented approach have made a noticeable impact on the vision, direction and achievements of the organization. She played a critical role in Global Payments’ recent $700 million acquisition of AdvancedMD from Marlin Equity Partners.
Amanda is fluent in Mongolian and enjoys mountain biking, snowboarding, observing and playing all sports, and spending time with her husband and three children. Amanda has a bachelor’s degree in communication from Brigham Young University.
AdvancedMD revolutionized medical office software in 1999 with the introduction of the industry’s first true cloud solution. Today, the company continues to lead MedTech innovation with Rhythm, a complete cloud suite of smart applications that work in unison, accelerating collaborative workflow for every role of the practice. With Rhythm, staff members are empowered to thrive in the online age of healthcare and value-based reimbursement with essential clinical, financial, patient engagement and reputation management applications that are unified and available anytime, anywhere on any device. AdvancedMD strives to be the technology heartbeat of healthcare for providers, patients and payers for a healthier world.
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