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Particular reason why Physical Therapy and DME biz ops are more abundant lately?

Is it just coincidence or is there something going on with the implementation of Obamacare or the industry thats changing the rules. I am more interested in PT or mobility DME but both seem to have very good profit margins. Are there issues with Licensing, Medicare vs Private Ins, etc. What am I missing? This is for existing businesses, not startups. Thanks Joe

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The BAF Group LLC
MD

We deal in several Health Care lines. There is tremendous uncertainty over what exactly will occur, with Obamacare. Speaking with one of the Country's leading Health Economists does little, with our own complete understanding of what is to come, and the lawsuits over the plan, efforts to politically overturn the legislation and the sequester issue, all combine to add to the confusion.

Most people agree that many of the various specialties that are not hugely dependent on extremes in technology, will end up with greater volume. Diagnostics would also, theoretically benefit from adding a number of potential patients with mandated covereage. However, particularly with respect to DME, they worry - and rightly so - that reimbursement will be reduced. We are not as in tune with PT. But as a result of that concern, some DME companies owned by older operators or investors, are bailing out, because of that uncertainty. At the same time, there are a number of larger, chain-oriented DME companies that are buying up the smaller ones, which makes the small company owners even more nervous. It is a complicated marketplace. Nothing is engraved in stone, on anything; it is the concern over the unknown that appears to be in play.

Mar 26, 2013

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