Merger and Acquisition Support

The underlying economic realities are highly favorable for those wishing to invest in the senior health sector.  The elderly population is doubling in the coming decades, private health plans are regarded as the delivery mechanism of choice across the political spectrum, and opportunities for cost savings abound in this still-emerging market.

But in Federal Health, execution risks are magnified. Medicare Advantage is exceptionally complex from a financial and operational perspective. This means that deals are full of pitfalls--- and unrecognized value. Valuations derived from traditional payer models may not be reflective of the opportunity at hand.  How do you discount for exposure related to product type? Or a sub-standard risk adjustment score? What can a seller anticipating a sale do to drive valuation up? On the flip side, what are those operational deficiencies that really matter to a buyer? And in an industry where nearly 85 cents of every dollar goes to pay medical costs,  what lasting operational efficiencies are to be had in doing managed care “roll-ups” in the first place?

Gorman Health Group is poised to answer those questions. Our operational due diligence is focused on finding those things that the bankers and lawyers don’t know to look for. These "unknown unknowns" are where the risk and reward of this space are to be found.

For more information, please contact us at 202-364-8283.