Health Care M&A is on the Rise. So Are Health Care Costs.

It's been a while, but I've been busy adding to the health care information technology deal flow, which is not a surprise given the significance of health care in our economy. And it continues to grow. With the health care reform act, projections put healthcare spend at approximately 19% of GDP. A large part of that is the introduction of regular care access to over 30 million new patients. And how will we pay for this? Increased premiums, certainly, but hopefully the efficiencies of new wellness technology for consumers, as well as operational efficiencies for providers and payers will help bend the cost curve. Naysayers say that it's unlikely that cost savings will be passed along to consumers, especially those who enjoy employer provided health care, but employers are now aggressively adopting new wellness programs and high deductible plans (while eliminating high risk employees through hiring practices) to do their part. Overall this climate has created a fertile field for technology companies that have unique solutions for preventative care and chronic illness management. And McKesson, Cerner, Quality Systems et al have enjoyed significant revenue increases due to the HITECH part of ARRA. It's a good time for established health care technology companies. I suspect that as costs become distributed to employers and consumers, more innovative solutions will prosper as well.