Gene Elder and Daniel Graver Discuss Trends in Health Care M&A with Corporate Counsel Business Journal
For its article “As Disruption Drives Healthcare Deals, a Massive Sector Transforms Itself,” Corporate Counsel Business Journal spoke with Akin Gump senior counsel Gene Elder and associate Daniel Graver, both members of the firm’s health practice, about the political and economic trends reshaping M&A and transactions in the health care industry.
Elder and Graver first spoke about the role of private equity investors in the health care industry, particularly in segments such as pediatric services and therapies. They pointed out that PE investors “are looking for places to put capital to work” in this current low-yield environment. They are also attracted, they said, by other factors, such as changes to the Affordable Care Act (ACA), “efforts to develop new payment mechanisms and the ongoing implementation of healthcare technology.”
The discussion then shifted to the big jump in bankruptcy filings among hospitals and medical centers, with Elder and Graver pointing out that the fight over the ACA, and the resulting declining numbers of insured, has led, in some cases, to “negative fallout.”
Elder and Graver also addressed the topics of fraud and abuse and cybersecurity—the latter being an area where they said more resources “are being devoted to diligence focused on technology security issues,” especially with regard to IT systems review.
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