Corporate Entrants in Healthcare Struggle


On April 30, 2024, retail giant Walmart announced their closure of Walmart Health, a network of 51 health centers that provided “primary and urgent care, labs, x-ray and diagnostics, behavioral health, dental, optometry and hearing services.” Walmart cited the lack of profitability, escalating costs of operation, and challenging environment for reimbursement as the reasons behind Walmart Health’s unsustainability. This Health Capital Topics article discusses Walmart’s closures, the other corporate entrants struggling in the healthcare market, and what these challenges indicate for the primary care space. (Read more...)

Novant/CHS Deal Scrapped after FTC Intervenes


In February 2023, Novant Health, a 19-hospital, non-profit health system operating throughout the Carolinas, agreed to acquire two North Carolina hospitals – Davis Regional Medical Center and Lake Norman Regional Medical Center – from Community Health System (CHS), a publicly-traded mega-system operating in 15 states. After the $320 million deal was announced, the Federal Trade Commission (FTC) began an extensive review of the acquisition, and concluded that: (1) the transaction may substantially reduce competition; (2) create a monopoly; and (3) constitute an unfair method of competition. (Read more...)

Health Expenditures Projected to Approach $8 Trillion by 2032


On June 12, 2024, the Centers for Medicare & Medicaid Services (CMS) released their health insurance enrollment and national health expenditure (NHE) projections for 2023 through 2032. The annually-updated NHE is the official U.S. estimate of insurance enrollment and health spending. CMS projects that, between 2023 and 2032, the NHE’s annual growth rate of 5.6% will surpass the U.S. gross domestic product (GDP) annual growth rate of 4.3%. As a result, health spending as a share of the U.S. GDP is expected to jump from 17.3% in 2022 to 19.7% in 2032. This Health Capital Topics article reviews the notable findings from CMS’s projections. (Read more...) 

Valuation of Diagnostic Imaging: Technological Environment


Although medical imaging equipment is used to diagnose many conditions, a large capital investment may be required to obtain it. For example, a magnetic resonance imaging (MRI) machine can cost over $1 million for a refurbished model, and as high as $3 million for a new machine. But beyond the considerable cost of the imaging equipment itself, some machines that employ radiation or powerful magnetic fields to generate diagnostic images have certain architectural requirements in order to be utilized safely. The rooms that house such equipment (referred to as “suites”) are built to certain specifications so as to protect those outside the suite, i.e., in the scan room, control room, and/or computer equipment room. Between the machine itself, installation costs, and the suite, a single MRI can ultimately cost between $3 million and $5 million. This final installment of a five-part series on the valuation of diagnostic imaging centers will discuss the technological advancements impacting these enterprises. (Read more...) 

NEW ARTICLE

"DOJ Announces Record-Breaking Fraud and Abuse Settlement" authored by HCC President, Todd A. Zigrang, MBA, MHA, FACHE, CVA, ASA, ABV, and, HCC Senior Vice President and General Counsel, Jessica Bailey-Wheaton, Esq., was published by the National Association of Certified Valuators and Analysts (NACVA) in QuickRead.

 

For more recently published material written by HCC, please visit www.healthcapital.com

 

Read Here


IN CASE YOU MISSED IT

A recent HCC authored article entitled "2024 Healthcare Industry Outlook" was published by the National Association of Certified Valuators and Analysts (NACVA) in the March/April issue of The Value Examiner.


For more recently published material written by HCC, please visit www.healthcapital.com

 

Read Here