Quick Look Back...

A few months ago, the MT Consulting newsletter featured the thoughts of investment banker John Slater from FOCUS.  His article in the March, 2013 FOCUS newsletter pointed to an expected rise in company valuations in 2013.   His words also caught the attention of blogger Billy Frank at Axial, a technology company that offers an online marketplace connecting people, information and capital.  Yesterday’s Axial post recognized Mr. Slater’s words...and those of others in 17 Must-Read M&A Quotes from 1H 2013.  Take a look!

"The next 12-18 months will almost certainly be a highly favorable period for business exits.  If this proves to be a cyclical market top, the next favorable period for businesses owners wishing to sell may not come around before the 2020s.  In 2020 today’s sixty six year old Baby Boomer will be seventy-three and today’s fifty eight year old will be sixty five and studying Medicare options.” ~ John Slater

Infusion Therapy Provider Capitalizes on Growing Market

© Kulty Stock Free Images

Medical Specialties Distributors (MSD), supplier of infusion therapy products and supplies sees a bright future.  With the infusion therapy industry predicted to grow 50% by 2019*, MSD strengthened its position with the recent acquisition of Medical Technology Resources (MTR).  MTR specializes in drug-delivery technology and the billing of infusion products to healthcare providers.   

 "MTR's unique offerings and strong presence in the Midwest enhances our leadership position in the growing home infusion and oncology markets," said James Beck, president and CEO, MSD.  "Over the past three years, we have grown our national footprint through partnerships with multi-site health care providers and strategic relationships with leading manufacturers.  This acquisition is one more step toward our goal of creating a stronger growth platform for MSD.

In 2010, MSD partnered with Water Street Healthcare Partners, a private equity firm that focuses exclusively on the healthcare market.

The U.S. market for infusion therapy devices was valued at just under $1.5 billion in 2012, a 3.2% increase over 2011*. The market includes infusion pumps, intravenous (IV) sets, and needleless connectors (NLCs).  Spurring growth is NLCs and disposable ambulatory infusion pumps (as the number of alternate infusion therapy sites increase).  >>Read more 

* RnR Market Research

Retail Clinics Popular with High Earners

Trending up – that’s what a late 2012 survey report revealed about the use of retail clinics (generally located in drug stores and staffed by nurse practitioners or physican's assistants).   Not a surprise... that the survey publisher attributes the rise in use to convenience of appointment-free services, expanded hours compared to the average physician office and lower costs.  The survey from healthcare market research publisher, Kalorama Information, reported that 21.3% of US adults have visited a retail clinic - up from 10% in 2006.  

Now, Kalorama reports that retail clinics are favored more by higher earning households.   A survey of 2000 adults revealed that “59% of survey participants who said they used retail clinics had a household income of more than $50,000, while only 16 percent had a household income of under $25,000.”  Again, not a big stretch...as higher earners are visiting stores more frequently.  

As chain operators (Walgreen’s, CVS, Wal-mart, etc.) continue to promote their in-store clinics and offer services attractive to this income group (e.g.: camp physicals, weight loss programs), increased retail clinic visits is expected.  >>Read more

Direct Access in All 50

Done deal!  Indiana, with signed legislation, becomes the last state to allow residents to seek physical therapists’ services without a physician referral.  The state chapter of APTA has been working on Direct Access for over 13 years... now a reality beginning July 1st.

Benefits of Direct Access include a patient’s quicker access to care and medical cost reduction.  >>Read more

Plus 2 for The Ensign Group

The Ensign Group, Inc. ended the month of May with two more assisted living facilities under its corporate umbrella.  With operations primarily in the western US, the company now enters California's Central Coast region and complements existing facilities in the greater Salt Lake City-area.

118 Facilities in 11 States 

Last week’s acquisitions continue the company’s expansion of its assisted living base, increasing Ensign’s healthcare facility portfolio to 118 in 11 states.  Ensign group service companies include skilled nursing, rehabilitative care, home health care, hospice care, urgent care in addition to assisted living.

The Ensign subsidiary, Bridgestone Living, Inc. will oversee the transition of the 110-unit Santa Maria Terrace (Santa Maria, CA) and 69-unit Lake Ridge Senior Living (Orem, UT).   

>>Read More about Ensign's California and Utah acquisitions.

The Other Three R's

Remember the three “Rs”? 

While the educational approach to - Reading, (w)Riting and (a)Rithmetic - has changed over the years, I suspect that many of today’s business leaders excelled in one or more of these disciplines.  And, now... there’s another set of “R’s” for them to focus on.

Doug Dickerson, a leadership consultant, outlines the value that all leaders can bring to their teams through...

• Recognition
• Respect
• Reinforcement

John Maxwell, another leadership writer, asserts that you don’t have to be the main leader to make a significant impact on your organization. >>Read more to learn how to add value as a Leader.

“People always move towards someone who increases them and away from someone who decreases them.” ~ John Maxwell