Coronavirus News and Resources

This page is dedicated to curating third-party information on financial support for healthcare providers and the impact of the coronavirus pandemic on healthcare M&A. It is provided as a resource to our clients and community, and GHA does not assume responsibility for the accuracy of the information provided.

Please click on the headlines to read the full articles.

For Providers

  • No Free Lunch: Additional Regulatory Concerns in Healthcare Relief Funds
    This week the Department of Health and Human Services announced distribution of the first $30 billion of CARES Act funds for healthcare providers. According to HHS announcements, providers can expect funds in their accounts or checks mailed to them this week. Receipt and acceptance, however, come with new requirements and restrictions specific to these funds.
    Published April 10, 2020 by Bradley.
  • Medicare Resources and Information for Home Health and Hospice Agencies during the COVID-19 Pandemic
    The Centers for Medicare and Medicaid Services (CMS) recently provided Section 1135 waivers and guidance granting flexibilities to home health agencies (HHAs) and hospices during the Coronavirus (COVID-19) pandemic national emergency.
    Published April 10, 2020 by McDermott Will & Emery.
  • 10 Financial Support Opportunities for Healthcare Companies During the COVID-19 Crisis
    As countless U.S. businesses face unprecedented challenges due to the 2019 novel coronavirus (COVID-19), federal and state government and private organizations have mobilized to provide financial support to businesses impacted by the pandemic. The healthcare industry is a specific focus of many of these relief efforts, but the relief programs vary dramatically in terms of eligible businesses and attractiveness of terms.
    Published April 2, 2020 by McGuireWoods.
  • COVID-19 Funding and Recovery Opportunities for Healthcare Providers
    Congress has provided an unprecedented infusion of funding and other financial relief through a variety of new and existing programs to address the coronavirus (COVID-19) outbreak. This blog post outlines how the federal funds are flowing and how hospitals and healthcare providers will be able to access them to the extent that such information is available.
    Published March 30, 2020 by Holland & Knight.
  • COVID-19 Stimulus for Small and Mid-Sized Businesses At A Glance
    This update provides information on the CARES Act, Economic Injury Disaster Loans issued by SBA, “Main Street” Business Lending, Overnight Message to Banks, and Business Tax Relief.
    Published April 5, 2020 by Anesthesia Business Consultants.
  • Independent Physicians Push for Expedited COVID-19 Aid
    Independent physicians are hoping for expedited federal aid as elective procedures and non-urgent, in-person doctors’ visits are postponed to accommodate more COVID-19 cases, threatening their practices’ viability.
    Published March 27, 2020 by Modern Healthcare.
  • As COVID-19 Drives Demand for Some Healthcare Workers, Others Furloughed
    The coronavirus crisis has created a stratified impact on the healthcare workforce, with front-line doctors and nurses and select specialists in high demand, while others are finding demand for their jobs is dropping precipitously.
    Published March 27, 2020 by Healthcare Dive.
  • The COVID-19 Effect on Physician/APP Arrangements and Compensation Plans
    Here are a few actions health care leaders are taking with respect to provider arrangements as part of their COVID-19 response.
    Published March 24, 2020 by Hall Render Killian Heath & Lyman PC.
  • Recommendations for Health Care Providers in Managing COVID-19
    This advisory provides guidance for health care providers in responding to the COVID-19 pandemic.
    Published March 13, 2020 by Epstein Becker Green

For Private Equity Sponsors

  • Treasury and SBA Issue Updates on the Affiliation Rules Applicable to the Paycheck Protection Program
    This guidance, which supplements the SBA’s Interim Final Rules, will be of particular interest to private equity firms and venture capital funds and their relationships with their portfolio companies and investments.
    Published April 17, 2020 by Greenbaum, Rowe, Smith & Davis LLP.
  • Fed’s Stimulus Offers Relief to Private Equity despite Critics’ Objections
    Some private equity firms and their portfolio companies are celebrating access to a $2.3 trillion lending program launched last week by the Federal Reserve to boost a coronavirus-stricken economy. The Fed’s new program includes loans to small businesses that come with fewer restrictions than the $350 billion small-business loan program launched earlier this month by Congress. For some in private equity, it means much-desired access to funds that could help keep struggling companies afloat.
    Published April 16, 2020 by PitchBook.
  • PE Firm: Coronavirus Forces Triage on Private Equity-Backed Healthcare Deals
    The short-term impacts on M&A have been widely reported. Many healthcare deals with an imminent close are continuing to completion, albeit on an elongated timeline with potential holdback structures to accommodate virus-related uncertainty. The lender community will be a significant driver of M&A activity and valuations in the long-term.
    Published April 9, 2020 by Mergers & Acquisitions.
  • PE-Backed Physician Groups May Find Caveat to Access to Paycheck Protection Loans
    Many PE-backed companies are likely excluded from the paycheck protection program offered under the CARES Act; however there could be exceptions involving investments in the management entities of physician practice groups, according to industry experts.
    Published April 5, 2020 by PE Hub.
  • How Private Equity Operating Groups Are Taking on the Challenge of the Coronavirus
    To better understand how PE firms are addressing these complex choices, McKinsey interviewed 12 operating-group heads at leading PE firms and large institutional investors in Asia, Europe, and North America. The firms range from midmarket specialists to global buyout behemoths and cover the spectrum of investment strategies.
    Published April 5, 2020 by McKinsey.
  • CARES Act May Offer Relief for Medical Practices, but Raises Questions for Private Equity-Backed Practice Management Companies
    Physician practices and practice management companies are now seeking ways to maintain their economic viability. While many have considered drawing on credit facilities, terminating or furloughing employees, or otherwise pursuing deferral or forgiveness from lenders and vendors, many are now turning to the recently enacted CARES Act to assess whether they qualify for government loans or grants. Three major programs under the CARES Act may be a resource for a physician practice or practice management company.
    Published April 3, 2020 by DLA Piper.
  • CARES Act – Consideration for Portfolio Companies of Private Equity Sponsors
    While much of the attention has been focused on the loan programs in respect of the Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loans (“EIDL”) for small businesses found in Title I of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the Coronavirus Economic Stabilization Act of 2020 for eligible businesses, including midsize and larger companies, and States and municipalities found in Title IV of the CARES Act, the CARES Act and a number of existing laws provide additional benefits to allow portfolio companies of private equity sponsors to manage cash flow and provide further liquidity to the businesses.
    Published April 3, 2020 by Proskauer Rose LLP.
  • Eligibility of Private Equity Portfolio Companies for SBA Loans
    As part of the legislative response to the COVID-19 pandemic, the Senate has adopted a rescue package that includes access to the Small Business Administration’s (SBA’s) business development loan program under Section 7(a) of the Small Business Act for qualifying small businesses. It is important to understand why this program may not be available to many majority-owned portfolio companies of private equity funds, or for companies that are small but do not qualify because of their affiliation with their owners.
    Published March 27, 2020 by Weil Gotshal & Manges LLP.
  • Healthcare Private Equity and COVID-19: Eight More Things to Consider as Pandemic Continues
    As effects from the 2019 novel coronavirus (COVID-19) pandemic set in, stay-at-home orders and business closures are disrupting American lives and businesses. The healthcare industry is no exception, with the pandemic both creating a surge in necessary emergency/hospital care and presenting significant practical, financial and legal challenges, particularly for providers of non-emergent services and procedures.
    Published March 27, 2020 by McGuireWoods.
  • Healthcare Private Equity Responses to COVID-19: Nine Things to Consider as the Pandemic Worsens
    As federal and local health officials move to address this crisis, private equity funds are also taking steps to support their healthcare platforms that are the front-line defenders against this pandemic.
    Published March 19, 2020 by McGuireWoods.
  • Healthcare and Private Equity in a Financial Downturn: Best Practices to Effectuate a Successful Change in Ownership in Distressed Situations
    Successfully effectuating a change in ownership (including when the target is in financial distress) can be a critical step in a healthcare private equity transaction during a financial downturn.
    Published March 19, 2020 by McGuireWoods.
  • Viral Impact: How the Coronavirus Is Affecting M&A and Private Equity
    Mergers & Acquisitions has been exploring the potential impact of coronavirus on the middle market with ongoing coverage through this story, which is being updated on a daily basis, including new interviews with dealmakers being added as they become available.
    Published March 18, 2020 by Mergers & Acquisitions.

Impact on Healthcare M&A

  • Health Care M&A Volume Dropped 24% in Q1:2020
    “Looking back at the first quarter, it’s evident that the coronavirus pandemic began to affect health care deal making in February and into March,” said Lisa E. Phillips, editor of HealthCareMandA.com.
    Published April 22, 2020 by HealthcareMandA.com.
  • Industry Voices – Healthcare Deal-Making Should Remain Resilient despite the Coronavirus Pandemic
    Healthcare resources worldwide are coming under tremendous strain from the COVID-19 pandemic, but for healthcare-oriented investors, there’s good reason to believe the sector will remain resilient and reward those who are patient and smart.
    Published April 8, 2020 by Fierce Healthcare.
  • COVID-19 Slows Home-Based PE Activity for Now, but Could Boost Long-Term Interest
    The coronavirus has brought the U.S. economy and many of its industries to a screeching halt, so it’s not entirely surprising home health and home care dealmaking is expected to temporarily slow down amid COVID-19. While investing may slow down or pause in the short term, COVID-19 shouldn’t have a detrimental long-term impact.
    Published April 5, 2020 by Home Health Care News.
  • Hospitals May Look to M&A Cure for Bleeding Profits
    Community hospitals that have fought to stay independent may be ripe takeover targets later this year as health systems assess coronavirus-related financial trauma.
    Published April 1, 2020 by Forbes.
  • COVID-19’s Impact on ASC Operations & Valuations
    When approaching a valuation of an ASC in uncertain times, it is important to return to the roots of valuation theory – the driver for all business valuations is an investor’s expectations of future returns for that business coupled with the risk of achieving those expected returns.
    Published March 30, 2020 by VMG Health.
  • COVID-19 Short-Term Impact on Healthcare M&A Buyer Mindset
    There has been a wealth of conjecture and prognostication about the short- and long-term effects of the COVID-19 outbreak on healthcare in general and mergers and acquisitions in particular. On March 19-20, 2020, Mertz Taggart conducted a brief qualitative survey of 24 industry leaders representing home care and behavioral health strategic buyers and private equity groups.
    Published March 23, 2020 by Mertz Taggart.
  • Lenders Jittery, But Coronavirus Could Ultimately “Catapult” Senior Housing M&A
    The senior housing mergers and acquisitions market continued to hum along as the first cases appeared in communities, and even if a temporary slowdown occurs as the crisis deepens, dealmaking could surge dramatically when the pandemic wanes.
    Published March 15, 2020 by Senior Housing News.
  • M&A Delays Amid COVID-19: Sources Talk Virus Impacts
    As fear continues to circulate the market amid the coronavirus outbreak, PE investors, bankers and lenders are attempting to hash out how their deals and processes could be disrupted.
    Published March 11, 2020 by PE Hub.

Regulatory Developments

  • CARES Act Grants Could Spark False Claims Act Issues
    While CMS Administrator Seema Verma touted that Congress’ COVID-19 provider grant funds would have “no strings attached,” agreeing to the assistance could open providers up to False Claims Act liability risks.
    Published April 18, 2020 by Modern Healthcare.
  • Exemptions and Considerations for the Treatment of Opioid Use Disorder during the COVID-19 Emergency
    The Substance Abuse and Mental Health Services Administration (SAMHSA) has published new guidance for the care and treatment of substance use disorders during the COVID-19 outbreak. Of note, the guidance includes specific exemptions relating to the provision of methadone and buprenorphine to treat opioid use disorder and addresses other factors that should be considered when providing treatment for alcohol or benzodiazepine withdrawal.
    Published April 5, 2020 by McDermott Will & Emery.
  • Medicare Fast-Tracks Advance Payment to Providers
    The Centers for Medicare and Medicaid Services (CMS) has released a fact sheet explaining how it intends to put money directly into the hands of professional clinicians and hospitals whose surgical caseloads – and income – have plummeted due to the coronavirus (COVID-19) outbreak.
    Published March 31, 2020 by Anesthesia Business Consultants.
  • CMS Further Expands Telehealth Services for Medicare Recipients
    The Centers for Medicare and Medicaid Services (CMS) has released a fact sheet explaining how it intends to put money directly into the hands of professional clinicians and hospitals whose surgical caseloads – and income – have plummeted due to the coronavirus (COVID-19) outbreak.
    Published March 30, 2020 by Nextgov.
  • U.S. Antitrust Agencies Adjust Review Processes in Response to COVID-19 Crisis
    In response to the COVID-19 pandemic, the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice have changed two of their review processes.
    Published March 27, 2020 by Foley Hoag LLP.
  • Pandemic Prompts CMS to Drop Some Reporting Requirements for Value-Based Initiatives
    CMS granted some leeway Sunday for reporting data in connection with its numerous value-based payment programs, citing the coronavirus outbreak that threatens to overburden the U.S. healthcare system.
    Published March 23, 2020 by Healthcare Dive
  • FTC Premerger Notification Office Implements Temporary E-Filing System
    Due to the developing COVID-19 coronavirus pandemic, and consistent with guidance from the Office of Personnel Management, the Premerger Notification Office (PNO) will implement a temporary e-filing system.
    Published March 13, 2020 by the FTC

About Global Healthcare Advisors, LLC

Global Healthcare Advisors (GHA) is a boutique investment bank focused exclusively on buy-side acquisition advisory services in the healthcare industry. GHA has extensive experience aiding strategic companies and financial sponsors in executing transactions across a variety of healthcare verticals. Our team combines research with a vast rolodex and extensive M&A experience to provide clients with actionable proprietary deal flow.

For inquiries or more information, please contact Larry Carter, Managing Partner, at (786) 209-2340 or lcarter@ghadvisors.net.