A survey of healthcare services executives by GE Capital found that 88 percent are looking to make an acquisition over the next 12 months, and 72 percent expect their business to improve over the next year. The survey included responses from 223 senior executives within the healthcare industry, and was taken at GE’s Healthcare Services Conference held last month in Washington.
“As the survey points out, the trend of integration and consolidation is continuing across healthcare services,” said Darren Alcus, president and CEO of GE Capital, Healthcare Financial Services. “Companies are seeking ways to grow in a challenging environment. Decreased utilization, reimbursement rates under constant pressure and increased regulatory scrutiny have made it difficult to grow organically, so we’re continuing to see companies turn to M&A.”
The survey also found:
- In addition to M&A, 43 percent cited balance sheet refinancing and 36 percent cited recapitalization as critical growth strategies.
- As far as hiring plans, 55 percent of healthcare services executives plan to increase staffing levels over the remainder of 2013.
- Challenges: 37 percent of respondents cited the U.S. economy and budget pressures as their primary concerns over the next year, followed by Affordable Care Act changes and implementation.