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As health systems pursue scale, M&A could get bigger, more complex in 2018 and beyond

by Bryan Martin and Ion Skillrud, Deloitte & Touche LLP

Over the past several years, consolidation among hospitals and health systems has grown. Even more interesting than the number of mergers and acquisitions (M&A) are the sizes of the transactions, which also have increased. In 2018, we expect hospital and health system M&A trends will likely continue and that these transactions will become larger and more complex.

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Does your investment portfolio contain only one stock? No. Risk-based contract portfolios should be diversified too.

by Mark Bethke, FSA, MAAA, Managing Director, Deloitte Consulting LLP

Hospitals and health systems will take on gain/loss sharing contracts at different speeds, depending on their own capabilities and the demand in the market. After decades of fee-for-service contracts, it can be difficult and intimidating for a provider organization to move to these arrangements. For many health systems, there will never be a perfect time to start entering into gain/loss sharing contracts.

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Risk sharing: You’ve signed the contract… but what’s next?

by Mark Bethke, FSA, MAAA, Managing Director, Deloitte Consulting LLP

In this third post in our series on navigating strategic risk contracting, we’ll discuss what takes place after negotiations conclude and a health system has entered into a gain sharing or other type of risk sharing contract. This is where the work to succeed on those contracts begins and effective tracking of contract performance is key.

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2018 outlook: Life sciences firms could see some legislative headwinds, regulatory momentum

by Greg Reh, Vice Chairman, US and Global Life Sciences Leader, Deloitte LLP

For many US life sciences and health care companies, 2017 was a year of market and legislative uncertainty. Much of the year was dominated by on-again-off-again efforts to repeal and replace the Affordable Care Act (ACA), which has now turned to discussions about reforming the tax code. For some life sciences companies, this uncertainty created a wait-and-see approach to investments – particularly mergers and acquisitions (M&A).

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While the target is critical, do year-end losses on risk-based contracts even matter?

by Mark Bethke, FSA, MAAA, Managing Director, Deloitte Consulting LLP

As we discussed in part 1 of this series, health systems (hospitals and provider organizations) continue to take on more and more gain/risk sharing contracts. A key question for this type of contract is understanding how it will affect revenue and margins.

To help answer this question, while assessing what can be a very complicated contract,

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Is health care ready to bet big on blockchain?

by Christine Chang, Research Manager, Deloitte Center for Health Solutions, Deloitte Services LP

Many health care stakeholders are only beginning to consider the potential of blockchain – a type of shared distributed ledger that is already being tested in industries ranging from investment banking to sports television programming. The concept, which is the backbone of the digital currency Bitcoin, could be a game changer for health care by making health information exchange more secure,

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