HEALTH PLAN ACQUISITIONS TARGET SMALL- TO MEDIUM-SIZED COMPANIES

HEALTH PLAN ACQUISITIONS TARGET SMALL- TO MEDIUM-SIZED COMPANIES
Analysts say Medicaid-heavy health plans also will be especially attractive to private equity firms and others.
By Emily Berry, amednews staff .

As a newly reformed health system takes shape, private equity firms are eyeing investments in health plans. "Private equity funds are out to make money, to invest money, and they've got money they want to put to work now," said Chip Clark, partner in the provider care sector in Ernst & Young's North America Transaction Advisory Services practice. The practice, among other services, advises corporate clients on merger and acquisition strategies. Investments are likely to target small- to medium-size plans that won't elicit intense regulatory scrutiny, as well as Medicaid contractors likely to continue making money from growing Medicaid rolls and cash-strapped states, observers said. Experts said investment groups now see the consequences of health system reform clearly enough to consider putting some money into health care ventures, even if major elements of the new health system have yet to take shape. [...]

Read the entire article in American Medical News:

www.amednews.com/2010/bisa0809

SENDER'S COMMENT: FYI...maybe we should try to get a piece of this pie!