In this episode of Talking Pop Health, Eric Tower is joined by Hector Torres of FocalPoint Partners, a diversified, global investment banking enterprise with a strategic focus on the health care industry. Hector is Managing Director and co-head of Health Care Investment Banking at FocalPoint Partners.
Eric and Hector discuss private equity in health care in the nursing home industry, various topics on value-based care, and models that are being used to partner with the system.
Here are some highlights from Eric’s discussion with Hector:
What do you see happening with insurers and how are they responding to these changes? Are they encouraging it? Are they discouraging it?
“I think they are definitely sitting back a bit and seeing how the evolution takes hold. I don’t think they’re pro private equity. I don’t think they’re pro hospital and health system. I think the insurance constituency is pro insurance constituency If they are pro private equity in one regard, it’s very difficult for even a large independent physician group or really any health care services enterprise to really operate within value-based care at scale.”
What do you see 2022 holding for everyone in health care?
“It’s been fascinating. The year has begun at such an incredible rate of consolidation and market activity from a mergers and acquisitions perspective that we usually see a little bit of an air pocket during the holidays and things slow down and then folks are getting back into the mix of things in early January and come February, things are running at the same clip they were before we went into the holiday season.”
“This year we never saw a break in the action. The only thing we saw was an intensification in both the velocity and volume of deal making. We foresee that the level and pacing of deal making in the first half of this year will probably intensify to levels that perhaps we haven’t seen in a very long time. But we do foresee that there are a number of variables that could effectuate a slowdown, and those variables are likely to be in play in the third and fourth quarter of this year.”