The Affordable Care Act and health care reform are driving local and national medical mergers and acquisitions to unprecedented prices.
“Generally health care is red hot right now, driven primarily by the availability of credit, leverage is available at, I’d say, record levels relative to 2007,” said Matthew Margulies, managing director at Cain Brothers, an investment banking firm specializing in health care. “Interest in health care amongst the private equity community is at an all time high, in my view.”
Margulies spoke at a breakfast panel organized by the Westchester County chapter of ACG New York, which met Friday morning in Tarrytown and drew about 45 attendees.
Ari Markenson, a White Plains-based partner with the law firm Benesch, moderated the panel, whose members discussed high valuations for medical companies, the consolidation of home health care companies, the rising interest in companies that predominantly serve Medicaid patients and the move by insurers to purchase medical-service providers to keep costs down.