"Financial Solutions for Struggling Businesses in the US Healthcare Sector"Financier Worldwide - March 2009
SULLIVAN & CROMWELL LLP Partner Keith Pagnani was quoted in an article in Financier Worldwide magazine on solutions for healthcare business that are struggling financially. Mr. Pagnani noted that some sectors may see bigger losses than others. "For example, we're likely going to see managed care companies taking a bigger hit with a rise in unemployement," he noted. Although areas of the healthcare sector clearly need help, Mr. Pagnani expressed his belief that the sector should not request TARP funds. "A very significant part of the proposed stimulus bill... are Medicaid funds for the states," he explained, adding that the Obama administrations' proposed healthcare reform is the biggest wild card. Although cost-cutting measures will continue to affect the healthcare sector, Mr. Pagnani pointed out that "[t]echnology will also help companies, especially in the managed care space, to be more efficient and productive." He also commented on the industry's long-term outlook, suggesting that "[w]hile the US' aging population offers very attractive demographics, the growth story and untapped markets in many third world countries will continue to offer tantalisingly attractive opportunities."