22% of finance executives see healthcare market as 'bubble likely to burst': 4 findings

Some financial executives are concerned several sectors within the healthcare and life sciences industry are overvalued, according to a survey by KPMG and Leavitt Partners.

Here are four findings from the survey, comprising results from 265 finance executives.

1. Thirty-six percent of respondents said the healthcare and life sciences market is a "moderate bubble," while 22 percent said the market is a "bubble likely to burst."

2. Respondents said the biggest drivers of merger and acquisition activity in the healthcare and life sciences sector are accretive acquisition strategies (52 percent), cost consolidation (46 percent) and changing payment models (39 percent).

3. Fifty-two percent of respondents predicted the health IT and data subsector will have "a lot" of investment activity next year.

4. Respondents said the most overvalued sectors include biotech (71 percent), specialty physician practice management (67 percent), behavioral health (63 percent) and health IT (58 percent).

More articles on healthcare finance:
Cash-strapped Nashville hospital struggles with basic bookkeeping, city seeks to halt inpatient services: 7 things to know
Sharp HealthCare's operating income tumbles 49%
High-deductible health plans don't significantly curb spending on 26 low-value services

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars

>