Analysts Make 2017 Wall Street Predictions at Nashville Health Care Council Panel Event
The Nashville Health Care Council welcomed 650 members today to hear top investment analysts discuss 2017 predictions for the health care industry at its annual “Wall Street’s View on Prospects for the Health Care Industry” program.
The discussion was moderated by Wayne T. Smith, chairman and CEO, Community Health Systems, and included Whit Mayo, managing director, Robert W. Baird; A.J. Rice, managing director, UBS; Chris Rigg, senior managed care and health care facilities analyst, Deutsche Bank; and Paula Torch, senior research analyst, Avondale Partners.
Click here to view event photos online.
Photo credit: Donn Jones Photography
The priorities of Donald Trump, who will be inaugurated as President of the United States tomorrow, and the Republicans’ promise of “repeal and replace” for the Affordable Care Act served as an underlying theme for the discussion.
“The next couple of weeks are probably the worst time to try to make predictions of what is going to happen in the market. My sense is that they are pushing to give more health care control back to states. It is unclear exactly how this is going to play out, but change won’t happen overnight,” Rigg said. “Regardless, health care companies have to figure out how to do more for less.”
The analysts offered perspectives on a variety of sectors, including health care facilities, behavioral health, outpatient services, managed care, home care and more. The analysts identified HCA, Acadia, United Health Group and Envision Healthcare as specific companies to watch in 2017. They also agreed that sectors that are not sensitive decisions related to the repeal and replace of the Affordable Care Act are those more likely to grow in 2017.
“There will be outperformance in areas that are a little more immune to the ACA decisions, including behavioral health care. Many sub-sectors of behavioral health, including companies that serve those with intellectual disabilities, eating disorders and opioid addiction, are poised for growth,” Torch said.
“The election threw us a curve ball, but there are some pockets of opportunity. The areas of ambulatory services and physician practice management will see growth moving forward,” Mayo said.
The panel discussed the effects of industry trends on the market, including M&A activity, consumerism, value-based purchasing and emerging technology.
“When it comes to M&A, it used to be the little guy merging with the big guy, or two big guys merging together. But now, we see more untraditional partnerships, more vertical collaborations,” Rice said. “Companies are looking to partner with others who can help them take the next step and increase efficiency, whether that’s revenue cycle management or understanding patient behavior.”
Nashville is headquarters to 18 publicly traded health care companies, which employ 500,000 people throughout the world and see $78 billion in annual revenue.
“There is no other health care community like Nashville, and many of the people in this room today are developing solutions that will improve health care in the years to come,” Smith said. “We are thankful to the Council for bringing us all together to learn and connect with one another.”
Bass Berry & Sims served as presenting sponsor of the program with Alvarez & Marsal, First Tennessee Bank, Gresham, Smith & Partners, and Jarrard Phillips Cate & Hancock as supporting sponsors. The program’s media sponsor was Modern Healthcare.
About the Nashville Health Care Council
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 500,000 jobs and $78 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.
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