The experts within our Healthcare Group maintain ongoing contact with a wide range of knowledgeable sources to stay abreast of the issues and trends that could impact the industry’s M&A climate or otherwise influence our clients’ businesses.  Following are a few of the topics addressed in our most recent Healthcare Industry Review, which is published quarterly.

HEALTHCARE INDUSTRY REVIEW (2008: Q1) (View complete report)

Healthcare Consumerism on the Rise

Educated healthcare consumers are beginning to realize differences in the performance of healthcare plans and providers. Concurrently, there are a number of useful consumer tools, mostly Internet-based information sources, that are enabling these consumers to become more engaged in their healthcare decisions and purchases. In 2008, this consumerism movement will challenge health plans to develop innovative and affordable insurance products that encourage personal accountability. Consumer directed health plans (CDHPs) have been the standard bearers of this movement. These plans, which typically feature high deductibles and consumer-controlled savings accounts, are designed to increase consumer awareness about healthcare costs and provide incentives for consumers to consider costs when making healthcare decisions. Recent studies by PricewaterhouseCoopers show a lower medical cost trend in these plans, which is expected to result in increased adoption by employers and employees. Additionally, certain tax advantages received by CDHPs have led to an increase in their popularity. Though only 4 percent of the commercially insured population is currently enrolled in CDHPs, the market share of these plans is expected to triple by the end of 2008.

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