Home Health Has Most Growth Potential, Say Health Care Execs

Healthcare executives expect home health to see the most growth among several other healthcare services segments in the fourth quarter of 2013, according to a recent survey conducted by GE Capital Healthcare Financial Services. 

More than four in ten surveyed (41%) picked home health as the segment of healthcare services—out of hospice, hospitals, rehabilitation, home health, and assisted living/skilled nursing—they expect will see the most growth through the remainder of the year.

The hospital segment was a close second with 38% of executives in agreement, followed by assisted living and skilled nursing, at 28%.

“As the survey points out, the trend of integration and consolidation is continuing across healthcare services,” said Darren Alcus, president and CEO of GE Capital, Healthcare Financial Services, in a statement. “Companies are seeking ways to grow in a challenging environment. Decreased utilization, reimbursement rates under constant pressure and increased regulatory scrutiny have made it difficult to grow organically, so we’re continuing to see companies turn to M&A.”

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Chart source: GE Capital Healthcare Financial Services, 2013

A large majority of healthcare executives expect they’ll pursue mergers and acquisitions before the year is over, according to the GE Capital Healthcare Financial Services survey of healthcare executives, which examined the expectations of more than 200 senior executives within the healthcare services industry in advance of its 2013 Healthcare Services Conference held last week in Washington, D.C.

While 43% anticipate pursuing refinancing in the next few months, more than twice as many—88%—executives believe M&A is in their near-term future, the survey found. 

Overall, optimism was high, as 72% of executives believe their businesses will have a stronger upcoming performance as compared to the last few months. Only 4% are anticipating weaker performance, while nearly a quarter believe they will perform the same.

Written by Alyssa Gerace

Alyssa Gerace

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