Earlier today, I attended a special sold-out event on Wall Street’s View on Prospects for the Health Care Industry sponsored by the Nashville Health Care Council.
Moderated by Wayne Smith of Community Health Systems, the panel included the following Wall Street analysts: Chris Colley, Managing Director of medical Devices for Stephens, Inc.; Kemp Dolliver, Managing Director of Avondale Partners; Frank Morgan of RBC Capital Markets; and Adam Feinstein of Barclays Capital.
The health care sector represents one of the few primary arenas for growth in the construction industry. Naturally, I was anxious to hear what these financial giants had to say about the health care market in 2011.
- Growth, steady, decline. You can expect to see growth in renal dialysis facilities, nursing home facilities and rehabilitation hospitals. Long-term acute care hospitals, hospice facilities and senior care facilities will remain steady or "neutral". Home health care should see a decline.
- Cost-savers. The segments in the health care industry that will remain strong in 2011 are those that involve cost-saving solutions and technologies.
- Uncertainty. When speaking about economic trends in the health care industry, the real uncertainty is health care reform. As the Federal government continues to debate the right balance of cost and benefits, whatever policy remains in the end will affect Wall Street’s view of the health care industry (and consequently the construction sector of the industry).
Remember, these are financial analysts talking about financial trends in the health care industry. If you were to read between the lines, you can verify what many in the construction industry have predicted . . . there many opportunities for growth in new construction and renovations of existing facilities. As cost-savings becomes an increasing factor in the analysis, I think you are going see an increase in the greening of health care buildings.
Image: Matthew Knott