Determination of the Appropriate Standard of Value & Premise of Value
Each outpatient enterprise has unique value drivers that impact the typical valuation approaches, methods, and techniques that are often utilized in determining the value of these enterprises. This five-part Health Capital Topics series will address these approaches, methods, and techniques, and their importance in correctly valuing outpatient enterprises. The first installment of this series will discuss Fair Market Value, the most prevalent standard of value in the healthcare industry, and why this is the required standard of value for most healthcare transactions. This article will also discuss the premise of value, which further defines the circumstances of the transaction, and how to determine which methods may be applicable to valuing an outpatient enterprise. (Read more...)

Healthcare Prices Rise Slowly, Employment Growth Remains Volatile
According to the Altarum Institute's Center for Sustainable Healthcare Spending, the rate of increase for personal healthcare prices and employment have fallen, on a national basis, for the months of June and July 2014. In June 2014, national personal healthcare prices increased at a year-over-year rate of 1.7%, slightly lower than the year-over-year rate for May 2014 (1.8%). In July 2014, national private sector healthcare employment increased by 7,000 positions, a monthly increase that was significantly lower than the average increase over the past 24 months of 18,600 positions per month. The data may signify potential increases in healthcare utilization caused by the expansion of insurance coverage through the Patient Protection and Affordable Care Act, although factors such as uneven job growth throughout the second quarter of 2014, and uncertain levels of health literacy among the newly insured population, may limit those increases. (Read more...)

Health Systems Continue to Acquire Insurers
Since the start of the roll out of the provisions of the Patient Protection and Affordable Care Act (ACA) in 2010, consolidation has become increasingly common in the healthcare industry. Hospitals are merging to form health systems, as well as entering into the health insurance industry. The second installment of this three-part series on healthcare consolidation addresses the trend of health systems entering the insurance industry, which is frequently accomplished by acquiring health insurance companies and offering patients self-designed health insurance plans. (Read more...)

ACA Employer Mandate Requires Decisions Regarding Health Insurance Offerings
The first two parts of this four-part Health Capital Topics series on Health Insurance Exchanges discussed issues for beneficiaries and insurers with the opening of the Marketplace in 2014, as well as Consumer Operated and Oriented Plans (CO-OPs). This third installment will address Employer Insurance Plans, which for decades have been the primary delivery method for health insurance, and a critical component to benefits packages used by employers to attract and retain talent. As a result of various ACA provisions, many employers must decide how to handle the "employer mandate," also known as the "pay or play mandate." (Read more...)