CIT: Middle Market Healthcare Execs Optimistic for 2015
Middle market healthcare executives are optimistic for 2015 with 71% indicating that they expect their revenues to increase this year and two-thirds (66%) anticipating an increase in volume growth, according to the “2015 Middle Market Healthcare Outlook” released by CIT Group. The study was conducted online by the Harris Poll among more than 150 middle market healthcare executives.
“Our study reveals how middle market healthcare executives view the state of their industry, as well as the opportunities and challenges they expect to face in the coming year,” said William Douglass, president of CIT Corporate Finance, Healthcare. “Executives are optimistic, and while they continue to confront new challenges, they believe 2015 will be a year for growth.”
Key findings from the study:
- M&A Expected to Increase: More than half (56%) of executives expect M&A activity to increase over the next twelve months. They believe this M&A activity will be driven by strategy (61%), rather than by purchase price multiples/valuation (39%). They agree that M&A has helped keep revenue up (83%), removes competition (83%) and allows for efficiencies to be realized (76%).
- Technology Providing Better Quality Care: There is consensus among executives that technology is helping to provide better quality care (93%), including convenience for consumers (91%), and 73% agree that technological advances in their respective sector are helping to bring costs down for consumers.