Top investment analysts discussed 2015 predictions for the health care industry at the Nashville Health Care Council’s annual Wall Street’s View on Prospects for the Health Care Industry program today. More than 500 health care executives gathered at the event to hear what this year has in store for Nashville’s most important industry.
The discussion was moderated by Wayne T. Smith, chairman and CEO, Community Health Systems, and included Darren Lehrich, managing director, Deutsche Bank; Josh Raskin, managing director, Barclays; A.J. Rice, managing director, UBS; and Paula Torch, senior research analyst, Avondale Partners.
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These analysts offered perspectives on a variety of sectors including health care facilities, behavioral health, outpatient services, managed care, senior living, long-term care and more. The analysts identified acute care, behavioral health, physician services and ambulatory surgery centers as top sectors for growth in 2015.
“Fifteen publicly traded health care companies are headquartered in Nashville, and they influence a great deal of the nation’s health care. The industry is ripe for innovation and investment, and there is no better place for that than here in Nashville,” said Smith.
“Health care facilities have recently excelled in the marketplace, and as the ACA is implemented, growth could continue as more people gain coverage and the amount of bad debt for hospitals declines,” said Lehrich.
“As long as hospitals are able to control costs and better manage readmissions, they can expect positive growth under the new reimbursement models that are emerging as a result of the Affordable Care Act,” said Rice.
“An area of continued potential is the behavioral space, and much of that momentum is occurring right here in Nashville, home to interesting players in that niche,” said Torch.
“We are watching managed care closely this year. More insurers are participating in the exchange marketplaces. They are offering unique population health tools and engaging in creative partnerships,” added Raskin.
In addition to discussing the Affordable Care Act’s impact on the market, speakers offered insights on the upcoming Supreme Court Case of King V. Burwell. The case is challenging the use of tax subsidies on the federal exchange.
“The industry as a whole, as well as consumers, could be hit with higher costs if tax incentives are taken away as a result of King v. Burwell, so investors are keeping a close eye on the case,” said Torch.
“Wall Street continually looks to Nashville-based health care companies to see where the health care industry is headed. The Council’s member companies are leading the way in implementing innovative solutions to improve health care across the nation and the world,” said Caroline Young, president of the Council.
H3GM served as presenting sponsor of the program with Alvarez & Marsal, Gresham, Smith & Partners, Jarrard Phillips Cate & Hancock and United Community Bank - Healthcare Banking as supporting sponsors. The program’s media sponsor was Modern Healthcare.
About the Nashville Health Care Council
Celebrating its 20th anniversary this year, the Nashville Health Care Council is a premier association of health care industry leaders working together to further establish Nashville’s position as the nation’s health care industry capital. Supported by nearly 300 corporate members, including Nashville-based and national health care companies, the Council serves as a trusted source for information on trends that influence the health care industry. The organization provides members with one-of-a-kind networking opportunities and access to Nashville’s elite health care business community.
Worldwide, Nashville’s health care industry generates more than 400,000 jobs and $70 billion in annual revenue. The industry is Nashville’s largest and fastest growing employer. For more information on the Council, please visit www.healthcarecouncil.com.
