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Healthcare Services Poised for Growth in Next Twelve Months, Capital One Survey

November 04, 2016, 07:16 AM
Filed Under: Healthcare

Investors and senior professionals from the healthcare services industry have a decidedly positive outlook for the year ahead, with more than two-thirds (68 percent) anticipating stronger business performance, according to a new survey from Capital One. Nearly all of the remainder (31 percent) expect to deliver similar financial performance in the next twelve months, with just one percent anticipating a weaker year ahead.

“Expectations are looking up as we close out the current year, and our survey revealed a shared sense of optimism by healthcare executives from all corners of the industry,” said Darren Alcus, President, Capital One Healthcare. “We’re seeing more companies evaluate hiring and investment opportunities to further expand their businesses in the year ahead.”

Within the healthcare services sector, home health and hospice was named by 53 percent of survey respondents as a market sector likely to see strong growth in the coming year. On the hiring front, 56 percent of respondents have either made new hires in 2016 or plan to before year’s end, with just 17 percent stating that they have no plans to hire. Of those hiring, 60 percent plan to bring on managers, and 55 percent expect to make c-level executive hires.

In addition, two-thirds (67 percent) plan to pursue an acquisition in the next 12 months and about half of respondents (49 percent) foresee a recapitalization and/or refinance in the next year. “Despite some cooling over the past year, respondents continue to be bullish about M&A plans,” said Al Aria, Senior Managing Director for Capital One Healthcare’s corporate finance team. “The right financial partner is a critical component to executing a successful growth strategy.”

Forty-one percent cited regulatory scrutiny as the most concerning aspect of the healthcare industry. Pay for performance and ACA changes/implementation are also concerns, with 23 and 22 percent of respondents, respectively, stating that these issues worry them most.

“As healthcare executives look ahead to the coming year’s opportunities and challenges, we look forward to supporting our customers in their growth plans,” Aria said.

Capital One Healthcare is a leading provider of financial services to the industry with over $11 billion in total outstanding balances. Customers across healthcare sectors—including senior housing, healthcare services, pharmaceuticals, medical devices, healthcare IT and medical offices—rely on Capital One Healthcare to finance acquisitions, refinance existing debt, support working capital needs and fund growth initiatives. With in-depth expertise, our team of professionals creates solutions tailored to meet the needs of our customers.

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