While the individual market is still in flux, careful analysis of carriers’ performance reveals several factors are associated with better results.
Topic Corporate finance
Between 2013 and 2014 absolute enrollment and revenue grew by 17 million lives and $86 billion respectively.
New research finds that the healthcare sector has been very good to private equity, especially payor and pharmaceutical services. And specialist firms seem to have an edge over generalists.
Payors today must carefully select which markets to focus on—both within health insurance and in adjacent businesses. To determine this, they need insights into where growth and margin can be earned, the foresight to determine when market inflection points might happen, a clear view of their competitive advantages and capabilities, the fortitude to make tough resource allocation decisions, and the agility to alter course as the market shifts.
Regulatory changes and the economic recession have disrupted the U.S. healthcare industry, threatening to erode the advantages of market leaders. As many payors turn to M&A strategy, its imperative for them to understand the inherent risks and the factors that guide M&A success.