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Supreme Court Decision Won’t Dent Investment in Health-Care Sector

June 27, 2012

As appeared in The Wall Street Journal’s Private Equity Blog

While awaiting the Supreme Court’s much-anticipated decision, The Wall Street Journal explored how investors in the private equity sector were likely to respond, however the decision fell.

According to Kaye Scholer Senior Corporate Partner Joel Greenberg, “While the complexity of analyzing how companies would perform under various scenarios has delay some private equity firms from closing deals until the decision, health-care is still going to be a good investment area no matter what the court does.”

“Market forces are driving demand for managed-care providers and outsourcers who can lower costs, and mergers and acquisitions in the space will get a boost if the insured population rises as a result of health-care reform,” Greenberg added.

“Any decision other than upholding the law will likely return health care into the national policy debate. Some states may choose to follow in Massachusetts’s footsteps, or new federal legislation may emerge as long as there is a drive to become more inclusive on health-care coverage and to control expenses,” Greenberg concluded.

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