Healthcare M&A Activity Emphasizes IT Integration

Mergers and acquisitions this year have put an emphasis on IT integration and continuity of care, according to Mark Reibolt, CPA, managing partner and chief executive officer, Coker Capital Advisors, Alpharetta, Ga.

Reibolt, speaking at a packed education session at the Medical Group Management Association’s Annual Conference in New Orleans, noted that clinical integration has become the predominant strategy driving M&A among hospitals, health systems and physician-led medical groups. This is intended to move providers closer to integrated delivery system of care.

Physicians, he said, are ultimately driving the growth in the industry. “This time around it’s a partnership between organizations and physicians.”

Transaction activity is occurring in all segments of the industry and activity, valuation and multiples are increasing, Reibolt said. However, only two medical networks have gone public in 2010.

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