Health industry emerging growth companies need to understand the statuTes and regulations that govern the health industry and the health care economy and particularly how government investment in the health industry affects implementation of effective business plans.
The health industry comprises approximately 18% of the gross domestic product. However, the health industry does not follow normal economic trends because of the importance of investment by governmental reimbursement programs in the delivery of health care services as well as the regulations that evolve from federal laws.
Today, approximately 40% of all direct spending on health care comes from governmental reimbursement programs, and those funds trickle down to all suppliers of goods and services to the health industry. Like it or not, Medicare has historically been the engine that drives the health industry, and it is important to understand the role of governmental reimbursement program spending in the context of healthcare business transactions because it is a primary source of health industry operating capital.
all emerging growth companies need to understand the shift from a “fee for service” economy to a “coordinated care” economy.
The health industry is now facing the great mystery of how federal health care and tax reform will change economic conditions. For many years, the entire health industry operated on a “fee for service” model which financially motivates providers and suppliers to perform or order more services, medical devices, and pharmaceuticals.
However, any economy based on the number of services or items provided or ordered cannot be sustained interminably, and both governmental and private payors are moving toward implementation of “coordinated care” payment models (for example, bundling, capitation, medical home systems, pay for performance, and similar models).
Thomas william baker has the experience and expertise to serve in an advisory or mentoring role for emerging health industry enterprises.
Biomedical and medical device companies need health industry advisory services. Mr. Baker also has experience in advising emerging biomedical and medical device companies that require clinical trials and FDA clearance and need to raise capital from private equity and venture capital sources.