As the New Year approaches, the The Ambulatory M&A Advisor has been working with CEOs and developers from across different areas of the market, including Nova Medical Centers, to bring its readers various predictions for 2016 in the field of Occupational Health.
“We see a lot of consolidation happening in many different facets of healthcare. Workers comp and occupational medicine is no different. We have seen a lot of consolidation over the years, but I think you are actually going to see it pick up in 2016. You have got some of the big players that are getting more involved again, as well as just some of the other local groups that are starting to grow as well, becoming more and more ripe for acquisitions,” Coe says.
Coe explains that some of the biggest challenges are just dealing with the regulatory environment of healthcare. Even for larger groups, he says it is difficult for them to be able to adapt to all of the changes.
The other challenge that occupational health is dealing with is just reimbursement he says.
“It is becoming more and more expensive to run a practice because of the need to upgrade to ICD-10, or to adapt to EHRs that meet specific requirements that continue to increase from year to year. Now, they are in a position where you have to keep up with those costs, but reimbursement for the services provided has gone down. So, that is one of the biggest challenges that you have to face; How do you maintain the level of margins that you need to, and still provide good healthcare?” Coe says.
“However, not only are these changes and obstacle that we have to overcome, but they also give us the ability to adapt to the changes, adapt to the needs of the patients as well as meeting the requirements of the regulations that are coming out as well. So, to be someone that can provide a workable solution and be able to maintain a business and still provide good patient care; I think is the key to opportunities.”