With markets off to a bumpy start, more than 600 executives gathered at the Omni Nashville Hotel to hear top investment analysts discuss 2016 predictions for the healthcare industry.
Wayne T. Smith, chairman and CEO of Community Health Systems, moderated the Nashville Health Care Council’s annual “Wall Street’s View on Prospects for the Health Care Industry” program. Panelists included Frank Morgan, managing director, RBC Capital; Chris Rigg, senior managed care and healthcare services research analyst, Susquehanna International Group; Andy Schenker, executive director, Morgan Stanley; and Brian Tanquilut, senior vice president, healthcare services equity research, Jefferies & Company.
The group offered perspectives on a variety of sectors, including healthcare facilities, behavioral health, outpatient services, managed care, dialysis, senior living, long-term care and others. The panel identified behavioral health, post-acute care and ambulatory surgery centers as top sectors for growth in 2016.
“The 16 publicly traded healthcare companies headquartered in Nashville have a great deal of influence on healthcare throughout the nation,” Smith said. “Wall Street continually looks to Nashville-based companies to see where the healthcare industry is headed.”
The panel discussed the effects of industry trends on the market, including M&A activity, exchange enrollment rates, value-based purchasing and innovative care models.
“As more CMS incentives are put in place, we're seeing volumes shift to home-based care and an increased pressure on skilled nursing facilities. At the end of the day, I think home health will see the biggest increase in volumes. We're bullish on home health,” said Tanquilut.
“The ACA achieved its aims of having more people with health coverage, but it didn't address issues like costs. The market is ripe for innovation, and I think some healthcare startups have potential to have a huge impact," said Schenker.
“People on Wall Street are excited about the opportunities surrounding bundled payments. Incentives outlined by CMS are driving adoption and momentum, so I think there's room for growth there,” added Morgan.
“At the end of the day, I don't see any significant coverage disruptions from major insurers pulling out of the ACA marketplace,” noted Rigg. “We may see one or two get out after this year, but moving through 2016 and onto 2017, I expect things to stabilize across the board.”
In addition to discussing the upcoming presidential election’s impact on the market, the speakers offered insights on the recent market volatility and factors that will determine if it will continue.
“The Council’s member companies are leading the way in implementing innovative solutions to improve healthcare across the nation and the world,” said Council President Hayley Hovious. “We are pleased to provide them with access to the vital information provided today.”
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