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In the News: August 3–9

Sg2 is dedicated to helping our clients interpret the latest news and trends in health care. Below you’ll find our analysis of this week’s key industry headlines, along with links to related Sg2 resources.

FDA Announces New Steps to Advance Digital Health Care

The FDA recently announced the Pre-Cert for Software Pilot Program, an initiative in the broader Medical Innovation Access Plan that will help regulatory teams determine the appropriate criteria and guidelines for firm-based precertification, with the goal of fostering entrepreneurship, competition and digital health care innovation. The new approach will review the software development process or the developer instead of the product, which was the traditional method for evaluation. Companies can submit program participant requests starting August 1, 2017.

Advanced analytics has been top of mind for many health system executives. Sg2 has detailed the continuum of advanced analytics, sharing insights at each level to help leaders build a path toward digital innovation. To learn more, check out the Sg2 Report: Advanced Analytics: A Foundational Framework.


US Health Services Deals Grow in Total Value

A PricewaterhouseCoopers report found that in the last quarter, the US Health Services industry announced more than 200 deals that totaled $49.6 billion—an increase of 201% from Q2 of the prior year and 514% from the previous quarter. This bump was due to an increase of megadeals (deals exceeding $1 billion), 10 of which were announced last quarter with a total deal value of $43.3 billion.

Sg2 believes health systems have the opportunity to increase value through economies of scale, which is becoming essential for cost savings as organizations shift from a fee-for-service to a value-based payment environment. To learn more about how health care organizations can find value in areas across the health care spectrum, read the April 2016 Sg2 Strategic Countdown: Economies of Scale.


Mental Illness Experienced by an Estimated 43.7 Million Americans

A recent report from the Substance Abuse and Mental Health Services Administration found that an estimated 43.7 million US adults aged 18 or older experienced any mental illness (AMI) in a given year, based on an analysis of National Survey on Drug Use and Health data from 2012 to 2014. While the report found that AMI was present in every state, there were significant differences in the presence of AMI among and within states.

While mental illness is common, patients and providers often neglect treatment. Sg2 feels that as organizations move further into value-based care and risk-based contracts, it will be imperative to address the unmet demand for inpatient and outpatient behavioral health. To learn more about how to strengthen the behavioral health System of CARE, read the Sg2 Report: Reconsidering Behavioral Health.

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As of February 11, 2016, Vizient, Inc. has completed its purchase of MedAssets Sg2 and spend and clinical resource management segments from Pamplona Capital Management, LLC. MedAssets revenue cycle business will continue to operate as a wholly-owned subsidiary of Pamplona Capital Management LLP.

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