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May 23, 2018

Expert Investors Discuss Keys to “Financing the Deal” at Council Event

Expert Investors Discuss Keys to “Financing the Deal” at Council Event

More than 300 health care executives gathered today to hear from top financial executives Matt Carroll, general partner of WestView Capital Partners; Anna Haghgooie, health care managing director of Sandbox Industries; and Paul Wallace, managing director of the Heritage Group, as part of the Nashville Health Care Council’s signature “Financing the Deal” panel discussion.

Tom Wylly, senior partner of Brentwood Capital Advisors, moderated the panel as industry financial experts gave insider perspectives on the state of the market, health care transactions and the outlook for funding Nashville’s $84 billion health care industry growth.

View event photos on Flickr.
Photo credit: (c) 2018, Donn Jones.

Despite overall deal activity being down in 2018, the panelists pointed out that competition within the market has driven increasing multiples in sectors such as health care technology, behavioral health, clinical supply, post-acute care, Medicare Advantage and companies helping providers shift from volume to value-based reimbursements.

Panelists also mentioned the significant role consumerism has played in recent deal activity, noting the shift to high-deductible health plans and the increased public attention to health care costs. This transformation has created a desire for a consumer-friendly marketplace and additional opportunity for innovation.

“The private capital markets have become highly efficient and competitive,” said Wallace, a Nashville native. “In today’s environment, it’s imperative for an investor to provide value beyond capital.”

There was a consensus by all panelists that collaboration is imperative when it comes to financing the deal.

“You’ve got to develop a relationship with the strategic buyers,” said Wylly. “There’s a huge relational element.”

Panelists also referenced the increasing desire for collaboration among payers and providers.

“Payers and providers want to have a different relationship with each other,” said Haghgooie. “There is often a desire from the C-suite, but the barrier is in the existing infrastructure.”

Panelists recognized that regardless of the complexities of today’s industry, the challenges allow for an increase in innovation and entrepreneurship.

“Because payment and reimbursement rules and methods are ever-changing, it presents continual challenges for providers,” said Carroll, someone with nearly 15 years of experience in the revenue cycle technology and services space. “As a result, it presents great opportunities for innovative companies to solve these challenges.”

All panel members touched on the Nashville health care community’s influx of innovation.

“There is such a great mentorship community here in Nashville helping young entrepreneurs create companies,” said Haghgooie. “Here, entrepreneurs are able to surround themselves with people who’ve been there and done that, which shows a lot of credibility to investors.”

In addition, while Nashville is known for its health care providers, the city has a chance to expand into the growing health care IT space.

“It would be a shame for Nashville to not be a hub of health care IT given the depth of knowledge where it really matters—the provider space,” said Carroll. “Nashville needs to recruit and build tech talent and rally around its deep provider legacy. If it can do this, Nashville can be a real leader on the technology side of the industry.”

“As was expressed during today’s event, Nashville has an incredible opportunity to come together to address issues facing the health care industry, particularly when it comes to health care IT,” said Hayley Hovious, president of the Council. “The Council looks forward to its role in bringing health care leaders together with innovative entrepreneurs in the technology space in order to meet these critical needs and to establish Nashville as the leader in health care IT.”

Today’s program was presented by Baker Donelson with supporting sponsors Buffkin/Baker, Council Capital, ESa, Hancock Whitney Bank and LBMC.






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