Executives in the health care industry, including the skilled nursing sector, have good feelings about 2016.
In fact, 71% of health care executives anticipate that their revenues will increase this year, and 55% are planning to seek financing in the next 12 months, according to the 2016 Middle Market Healthcare Outlook from CIT Group Inc. (NYSE:CIT), a New Jersey-based provider of commercial lending and leasing services.
Harris Poll conducted the survey, which involved 164 middle market health care executives at companies with revenue between $25 million and $1 billion. The survey was conducted between Feb. 18 and 29, 2016.
Executives from several health care industry subsets took part in the survey, including skilled nursing, pharmaceuticals, biotech, hospitals/medical centers, primary care, specialty care, behavioral health facilities, medical devices/supplies, other inpatient hospitals, health care technology, home health and hospice.
More than half of the executives surveyed believe health care M&A activity will increase in next 12 months, 65% think regulations have positively affected their company’s growth, and 88% said that technology is helping provide higher quality care, the survey found.
Additionally, 72% of health care executives believe that their sector is on track with the rest of the industry when it comes to determining how to best measure outcomes, the survey revealed.
Other recent surveys echo these health care executives’ positive outlooks for the year. For instance, investment in senior housing assets is expected to remain strong throughout 2016 because the segment provides buyers with favorable spreads, especially when compared to other traditional multifamily properties, Marcus & Millichap said in a recent report.
Seniors housing and care transactions hit a record high in 2015, with 354 publicly announced acquisitions made that year—17% higher than the number recorded in 2014.
Written by Mary Kate Nelson