More than 600 health care executives gathered in Nashville today to hear top investment analysts discuss 2016 predictions for the health care industry at the Nashville Health Care Council’s 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 Frank Morgan, managing director, RBC Capital; Chris Rigg, senior managed care and health care services research analyst, Susquehanna International Group; Andy Schenker, executive director, Morgan Stanley; and Brian Tanquilut, senior vice president, health care services equity research, Jefferies & Company.
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Photo credit: Donn Jones Photography
These analysts offered perspectives on a variety of sectors, including health care facilities, behavioral health, outpatient services, managed care, dialysis, senior living, long-term care and more. The analysts identified behavioral health, post-acute care and ambulatory surgery centers as top sectors for growth in 2016.
“The 16 publicly traded health care companies headquartered in Nashville have a great deal of influence on health care throughout the nation,” Smith said. “Wall Street continually looks to Nashville-based companies to see where the health care industry is headed.”
The panel discussed the effects of industry trends on the market, including M&A activity, exchange enrollment rates, value-based purchasing and innovative care models.
“As more CMS incentives are put in place, we’re seeing volumes shift to home-based care and an increased pressure on skilled nursing facilities. At the end of the day, I think home health will see the biggest increase in volumes. We’re bullish on home health,” said Tanquilut.
“The ACA achieved its aims of having more people with health coverage, but it didn’t address issues like costs. The market is ripe for innovation, and I think some health care startups have potential to have a huge impact,” said Schenker.
“People on Wall Street are excited about the opportunities surrounding bundled payments. Incentives outlined by CMS are driving adoption and momentum, so I think there’s room for growth there,” said Morgan.
“At the end of the day, I don’t see any significant coverage disruptions from major insurers pulling out of the ACA marketplace. We may see one or two get out after this year, but moving through 2016 and onto 2017, I expect things to stabilize across the board,” said Rigg.
In addition to discussing the upcoming presidential election’s impact on the market, speakers offered insights on the recent market volatility, and factors that will determine if it will continue.
“The Council’s member companies are leading the way in implementing innovative solutions to improve health care across the nation and the world,” said Hayley Hovious, president of the Council. “We are pleased to provide them with access to the vital information provided today.”
H3GM served as presenting sponsor of the program with Alvarez & Marsal, Avondale Partners, 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 $73 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.