2021 GI Outlook (GO) Conference | November 2021-Consolidation in the Healthcare Ecosystem and How it Impacts Gastroenterology

Consolidation in the Healthcare Ecosystem and How it Impacts Gastroenterology

Video Transcription

Video Summary

In this video, Scott Fraser, the founding partner of Fraser Healthcare LLC, discusses healthcare consolidation and its impact on gastroenterology. He explains that healthcare consolidation is driven by market forces, with payers, hospital systems, suppliers, and financial entities at the top of the consolidation food chain. Fraser highlights the consolidation efforts of UnitedHealthcare, which has a large provider network and owns a significant stake in the pharmaceutical and ambulatory surgery center industries. He also discusses consolidation in the pharmaceutical and medical device industries. Fraser notes that gastroenterology is being affected by the same stressors as other medical specialties, such as contracting rate cuts and administrative burdens. He discusses the rise of private equity firms as consolidators in healthcare and the growth of gastroenterology platform groups. Fraser explains that these platform groups focus on refining internal infrastructure, leveraging market density, and ultimately exiting by trading their businesses to another private equity firm or a strategic buyer. He concludes by urging gastroenterologists to educate themselves about consolidation as they plan for the future.

Asset Subtitle

Scott Fraser, MBA

Keywords

healthcare consolidation

gastroenterology

market forces

UnitedHealthcare

private equity firms