Top Financial Executives Discuss Investment Trends for the Health Care Industry

  Top Financial Executives Discuss Investment Trends for the Health Care
  Industry

Business Wire

NASHVILLE, Tenn. -- May 9, 2013

Today, an audience of 300 Nashville Health Care Council member executives
heard insights from some of the nation’s top investment experts at the
Council’s annual Financing the Deal panel discussion.

Speakers noted that while health care reform is causing a dramatic shift for
the industry, chances for growth exist in new, more efficient and innovative
business models. They also predicted an increase in merger and acquisition
activity through the remainder of the year.

“Nashville companies are finding new advantages in a rapidly changing
industry. As a city known for creativity and entrepreneurism, Nashville is
home to a diverse health care industry that is ready to meet the challenges
ahead,” said Wayne T. Smith, chairman, president and CEO of Nashville-based
public company Community Health Systems, who served as moderator of today’s
discussion.

View panel member interviews on YouTube and event photos on Flickr. Photo
credit: (c) 2013, Donn Jones

“Despite the trials of a new regulatory structure, there is a current wave of
ideas and entrepreneurship that is making health care a very dynamic place to
be investing right now. Companies with solid ideas and strong management are
ripe for dealmaking,” said panelist Ralph Davis, partner, Cressey & Company.

Panelist Brian McCarthy, vice chairman of health care investment banking, Bank
of America Merrill Lynch, added, “When the uncertainty of health reform is
behind us, I am convinced we will see an uptick in acquisition activity and it
will include some previously unlikely alliances among different industry
sectors.”

In response to the Patient Protection and Affordable Care Act, increasing the
quality and decreasing the cost of care is a top focus for most health care
companies. “The industry is changing as it reacts to price pressure and
payment reform. With these shifts, mergers and acquisitions are going to be
driven by deals that create efficiency and high-quality outcomes,” said James
McLain, senior vice president, Brown Brothers Harriman.

“Nashville health care companies are well positioned right now for dealmaking,
especially the investor-owned hospitals. We see this group particularly
interested in acquisitions that provide them a larger piece of the health care
delivery system,” said Jonathan Morphett, managing director, Avondale
Partners.

More than 250 health care companies have operations in Nashville and work on a
multi-state, national or international basis. Fifteen publicly traded health
care companies are headquartered in Nashville.

“Over the past 40 years, Nashville has led the nation in health care
innovation. The Council is dedicated to nurturing this thriving business
community so that established and emerging companies can continue to succeed
and grow here,” said Caroline Young, president, Nashville Health Care Council.

About the Nashville Health Care Council

The Nashville Health Care Council, founded in 1995 as an initiative of the
Nashville Area Chamber of Commerce, is an association of health care industry
leaders working together to further establish Nashville’s position as the
nation’s health care industry capital. Worldwide, Nashville’s health care
industry generates more than $70 billion in revenue and over 400,000 jobs, and
is Nashville’s largest and fastest growing employer. For more information on
the Council, please visit www.healthcarecouncil.com.

Contact:

Nashville Health Care Council
Katie Schlacter, 615-743-3147
kschlacter@healthcarecouncil.com
 
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