With healthcare costs predicted to continue to grow faster than inflation and GDP, healthcare IT and risk-sharing reimbursement models will become increasingly important tools used to bend the cost curve. Key insights from the report include:
- Recent deal activity (M*Modal’s acquisition by OneEquity and Healthcare Partners’ acquisition by DaVita, to name a few) illustrate the importance of healthcare IT in moderating cost increases.
- Deal activity in the first half was strong across many subsectors including BPO, EMR, Practice Management and Analytics.
- With PPACA now upheld by the Supreme Court, the pace of deal activity may accelerate.
- The shares of publicly-traded HCIT companies outperformed in the first half of 2012, with a median increase of 34%, despite significant declines by former favorites Accretive Health, WebMD and Allscripts, as investors continue to value the sector’s strong fundamentals.
