The COVID-19 pandemic undoubtedly had a strong influence on the healthcare merger and acquisition (M&A) market in 2020, as clearly seen from differences in activity between the first quarter and subsequent quarters of 2020, after the pandemic fully infiltrated the U.S. in March 2020. The COVID-19 pandemic represents a unique shock to the healthcare system, as it has directly affected acute care delivery. Revenues declined precipitously as: many lucrative, elective procedures were cancelled; occupancy rates in many hospitals decreased; and, new demands of staff related to the virus and infection prevention created greater burdens on hospital costs and clinical workers. (Read more...)

On January 14, 2021, the Centers for Medicare & Medicaid Services (CMS) published a final rule entitled, “Medicare Program; Medicare Coverage of Innovative Technology (MCIT) and Definition of “Reasonable and Necessary” to expedite Medicare coverage for “new and innovative technologies.” This final rule is in response to the October 3, 2019 Executive Order entitled, “Executive Order on Protecting and improving Medicare for Our Nation’s Seniors,” which directed the Secretary of the Department of Health & Human Services (HHS) to propose regulation that will encourage innovation and streamline the approval, coverage, and coding process for items and services eligible for Medicare coverage. (Read more...)

On February 9, 2021, Deloitte Insights released a new report on future healthcare spending trends, which also included updates to its 2019 report on overall industry trends. The COVID-19 public health emergency (PHE) has accelerated many of the predictions and shifts discussed in the 2019 report, but delayed others. Trends in spending are important to consider in light of reimbursement, regulation, and broader healthcare trends. According to a 2019 report, the main points of change for the healthcare industry over the next 20 years will revolve around consumers; interoperability: a holistic, prevention-based focus on health and well-being; and the equipping of healthcare providers with the technology and knowledge to collect and utilize on-demand patient data. (Read more...) 

This resulting shift to outpatient care has resulted in the advent of a growing number of diverse outpatient office-based facilities tailored to meet the accelerated growth in demand for healthcare services, leading to the establishment of, among other enterprises, ambulatory surgery centers (ASCs), and, more recently, office-based laboratories (OBLs). Currently, there are nearly 6,000 ASCs and nearly 700 OBLs4 in the U.S. This article is the first in a four-part series and will focus on the characteristics of and general trends related to ASCs and OBLs. (Read more...) 
On March 12, 2021, HCC Vice President and General Counsel, Jessica Bailey-Wheaton, will be co-presenting with Don Romano of Foley & Lardner, at the American Bar Association (ABA) 22nd Annual Conference on Emerging Issues in Healthcare Law. They are presenting on the topic of "Stark Law & Anti-Kickback Statute Final Rules: Valuation Implications"

This one-hour webinar provides legal and valuation perspectives on the finalized changes to the Stark Law and the Anti-Kickback Statute. Specific issues covered include:

  • The changes to the “big three” requirements – Fair Market Value, Commercial Reasonableness, and the Volume or Value Standard;
  • The new exceptions and safe harbors for value-based arrangements, including where the Stark Law and Anti-Kickback Statute final rules differ; and
  • Other new and modified exceptions and safe harbors included in the final rules.