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Occupational Medicine Predictions: Facing Challenges

December 3, 2015 by net health

This article, by Richard Romero, is published in The Ambulatory M&A Advisor.

Last week, The Ambulatory M&A Advisor examined 2016 development predictions for the Occupational Medicine sector.  Although Occupational Medicine services can be often included under the umbrella of Urgent Care in discussions about the industry, it is important to note that Occupational Medicine specifically caters to the needs of companies seeking job-related healthcare services for employees.  That’s not limited to Worker’s Compensation for injuries at the workplace, but also encompasses  drug and alcohol testing, employment physicals, and more.

The first edition of Occupational Medicine predictions focused heavily on M&A and development within the space. This second piece touches on M&A, but focuses on how Occupational Medicine can overcome challenges the industry faces.

Anthony Sanzo, Chairman and CEO of Net Health says that as far as M&A, he sees an expanded market for Occupational Medicine in the coming years.

“That expansion may be offset by consolidations or acquisitions.  However, I think probably the more important thread is the ongoing demand that we see in the sector for the uniqueand critical services that are delivered conveniently through Occupational Medicine centers,” Sanzo says.

“What we see is the trend toward assessing the health of employees holistically versus thinking of Occupational Medicine as simply Worker’s Compensation visits.  For employers, it’s part of an overall employee wellness campaign.  They’re looking for ways to provide not just work related injury care through Occupational Medicine programs, but also  primary care through on-site or near site clinics.  Today’s  market is driving  providers to look for ways to meet the needs of employers.” According to Sanzo, generally when you see industry growth, you do see an increase in the number of acquisitions because there is opportunity for larger organizations to grow  by acquiring smaller, independently run programs.

“We will see both a growth in the overall market and a continued trend toward consolidation through M&A,” Sanzo says.

See full article.

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