Today, more than 300 Nashville Health Care Council executives gathered to hear financial experts give insights on current and future trends in access to capital and first-hand perspectives on the state of the market, M&A activity and the outlook for funding the growth of Nashville’s $70 billion health care industry.
The “Financing the Deal” panel discussion was moderated by Nicole Maynard, Tennessee market president, J.P. Morgan Chase, and included panelists Robert L. Crutchfield, general partner, Harbert Venture Partners, Benjamin Edmands, managing partner and co-founder, Consonance Capital Partners, Eb LeMaster, managing director, Ponder & Co., and Philip Pucciarelli, managing director and head of health care services, BMO Capital Markets.
Click here to view video excerpts from today’s speakers.
Click here to view event photos online.
Photo credit: Donn Jones Photography
Panel members concurred that M&A activity has been particularly strong in the health care sector as a whole this year, with more than $92 billion worth of merger activity so far.
“M&A discussions are extremely active at the moment and we’re seeing a whole host of creative approaches. In addition, balance sheets are strong and confidence around M&A is quite high in the boardroom,” said Pucciarelli.
“Hospitals are seeking ways to enhance the quality of care while lowering cost and preparing for this rapidly changing new world,” said LeMaster.
Primary trends identified were consolidation, the shift from volume to value and joint ventures. The panel also discussed ingredients to a great investor-management working relationship.
“Trust between an investor and manager is key, and it takes time to build,” said Edmands. “It’s important for both parties to have a commonality of vision on where the business is going, and the flexibility to understand that the vision may change as the environment shifts.”
When discussing the upcoming Supreme Court decision, all panelists were in agreement that the catalyst of health care reform has already put the industry on a path toward value-based care, which will be difficult to change, no matter what the outcome.
Panel members noted Nashville’s large concentration of health care companies. The city is home to more than 250 health care companies that work on a multi-state, national or international basis. Fifteen publicly traded health care companies are headquartered in Nashville.
“Nashville is the epicenter of health care innovation, and will continue to grow and expand to meet the changing needs of the market. Entrepreneurs should tap into this community of experts and resources, determine the problems inherent in the system, and create disruptive enterprises to address those challenges,” said Pucciarelli.
“If you are an entrepreneur in Nashville, you are living the dream. This is a robust community for resources, capital and expertise to develop solutions to move the industry forward,” said Crutchfield.
“Nashville’s rich entrepreneurial culture and strong management expertise creates opportunity for investment and growth to meet the needs of a rapidly changing industry,” said Council President Caroline Young.
About the Nashville Health Care Council
Celebrating its 20th anniversary this year, 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, 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 400,000 jobs and $70 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.