Despite all the naysayers about health care reform, finance executives at the Nashville Health Care Council's annual "Financing the Deal" conference expressed confidence in the health care sector, noting increased availability of capital and an uptick in mergers and acquisitions activity.

Panel members concurred that health reform legislation would have a significant impact on the future of the industry and deal-making trends. All agreed that passage of health care reform has had a positive impact on the capital markets and has ended the uncertainty that hampered market activity for the past several years. There was also consensus that the provider industry will benefit from the influx of new patients created by reform.

"Capital is available, the public markets are stronger, and private equity is investing again, and the new legislation will result in a tremendous inflow of patients needing care," said Richard Jackim, head of MidCap Advisors' health care services practice group.

According to Jackim, "While it will take some time for things to play out, the influx of 30 million new patients in the system will be very positive...healthcare service providers that focus on delivering high quality services while reducing costs will be real winners. We expect companies in the health information technology space to especially benefit."

Jackim sees health care staffing, inpatient and outpatient health care providers, pharmacy management as well as companies involved in managing Medicaid and Medicare populations as sectors with strong potential.

Jackim also noted increased acquisition of home health, hospice and other post-acute services, as a means for larger players to more comprehensively control the delivery and total cost of care.
The panel members at the "Financing the Deal" conference were optimistic about increased mergers and acquisitions as the market continues to recover. They also anticipated a continuation in the health care related IPOs in 2010, noting a return of HCA to the public market.