Owners of healthcare companies are accustomed to creating financial value by focusing on the traditional approaches of scope of services, client/patient capacity, and revenue streams via reimbursement yield and patient volume. While revenue growth and operational efficiency are key value drivers, neither addresses a critical value factor known as Company Specific Risk (CSR). Differences in CSR are the primary reason that some healthcare firms get top dollar when sold, while others receive only a fraction of their potential sale price. Here's what healthcare owners can do today to increase their financial value by decreasing their CSR:
Added: May 24, 2017 - 8:23 PM / Views: 1769
2016 was a transitional year for Life Sciences, Pharma, and Biotech. Worldwide political changes upset long-standing systems that provided stability for the sector. At the same time, disruptive innovation weakened the power of huge companies to dominate these industry sectors. Despite these challenges, so many technologies are reaching the proverbial "critical mass" that we expect 2017 will be truly transformative. Here are 11 reasons that healthcare will change in 2017 - possibly forever: View full article by downloading attached PDF.
Added: May 24, 2017 - 8:20 PM / Views: 1645
At this point, only one thing is certain about TrumpCare: it's going to happen. But what will it look like? At this point nobody knows, probably including even Trump himself. Nevertheless, it's possible to read some "tea leaves" in Trump's appointments and the statements that he and his appointees have made in the past. Based on this, there are seven likely developments: View full article by downloading attached article.
Added: May 24, 2017 - 8:19 PM / Views: 1580
Going forward into the Trump presidency, one thing is certain: US healthcare insurance will change. HHS Secretary nominee Tom Price is a vehement ObamaCare critic. When he takes the reins we can expect a revamp of both the Affordable Care Act (ACA) and Medicaid. The most likely change will be an attempt to control costs by restructuring Medicaid from a federally-run program into a set of block grants at the state level. If history is any guide, this will result in reduced reimbursement for treatment services, which is very bad news for Addiction Rx providers and the communities they serve. View full article by downloading attached PDF.
Added: May 24, 2017 - 8:17 PM / Views: 1327
Have you ever wondered why two seemingly similar companies sell at significantly different multiples? What are buyers seeing in ostensibly comparable companies that causes sale price differences? The three secrets of market multiples are: View full article by downloading attached PDF.
Added: May 24, 2017 - 8:15 PM / Views: 1435
This past week, I listened to a compelling presentation on the evolving nature of value in healthcare by Monica Oss of Open Minds. At the conclusion, she noted that value-based payments for healthcare services and products “are at the core of healthcare innovation” and that "providers must be able to demonstrate value internally and externally.” The financial value of a healthcare company is obviously based on its bottom line. However, great financial results mean little if other people, especially investors or potential purchasers of the business, aren’t confident that they represent reality. View full article by downloading the attached PDF.
Added: May 24, 2017 - 8:13 PM / Views: 853
Business valuation should be based on qualitative and quantitative factors. Unfortunately, some valuators don't truly understand the qualitative nature of valuation. A such, CEOs, investors, and business owners often unwittingly rely on erroneous valuations. Any one of these five significant red flags should alert you to seek another opinion of value: View full article by downloading PDF attachment.
Added: May 24, 2017 - 8:12 PM / Views: 1318
In the last issue of SalientValue, we presented two of the four fundamental ways healthcare business owners can increase value: increase the growth rate for earnings and explore ways to extend a positive growth cycle. In this issue, we focus on how to enhance cash flow and how to reduce the cost of capital as strategies for maximizing value. View full article by download PDF attachment.
Added: May 24, 2017 - 8:08 PM / Views: 1186
Robert Kiyoshi wrote the following in Rich Man, Poor Man: “It’s not how much money you make, but how much money you keep, and how hard it works for you and how many generations you keep it for.” Though not focused on healthcare, he could easily have been talking about the challenges and opportunities available to the leaders of today’s healthcare companies. How do I build high quality, sustainable value in my company while delivering good services and/or products?
Added: May 24, 2017 - 4:14 PM / Views: 1265
John Garrett's Green Apple Podcast - Greg Papineau serves others to create stronger client relationships
Added: September 14, 2016 - 1:20 PM / Views: 913