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Healthcare reform doles out opps for PE, more consolidation

Published July 2, 2012 at 4:00 AM


Expect to see a boost in M&A activity in healthcare and pharmaceuticals as "insurance companies try to buy providers" as a result of the U.S. Supreme Court's upholding of the Patient Protection and Affordable Care Act, predicts Clarke Futch, founder and managing director of global healthcare investment firm HealthCare Royalty Partners. "You may see large providers or delivery systems actually become insurers," he adds. Futch also discusses what companies in the overall healthcare space can do on the financial end to stay ahead post-reform, and he admits that the landmark law will lead to continued consolidation and more deal opportunities for private equity shops. - Sarah Hashim-Waris





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