Letter from MAGMUTUAL Chair William S. Kanich
I am pleased to share with you the Spring 2023 issue of MDAdvisor. As Patricia Costante mentioned in her introduction to the Fall 2022 issue of this valuable publication, MDAdvantage Insurance Company and MagMutual Insurance Company have joined forces to become an even more powerful partner to you and your practice. My name is Bill Kanich, I’m the Chair of the MagMutual Board of Directors and I am excited that our companies have joined together.
I practice Emergency Medicine and have been a MagMutual policyholder for nearly 20 years. During that time, I have come to value the information that organizations like MDAdvantage and MagMutual share with policyholders. In that spirit, you will find valuable articles in this issue that can help with the smooth operation of your office (an update on coding compliance and audit risk mitigation), information on legislative activity that could impact your practice, and a CME article on diversity, inclusion and eliminating bias in your practice.
I hope that you will find these articles and the other information contained here both informative and entertaining. As always, please share feedback, as we value your thoughts.
And welcome to the MagMutual family! If you have questions about MagMutual, I hope you will not hesitate to reach out to me at the below email.
William S. Kanich MD, JD
Chair, MagMutual Board of Directors
[email protected]
Sincerely,
Chairman & CEO
MDAdvantage Insurance Company
Table of Contents
News & Acknowledgements
2022 brought significant healthcare dealmaking for private equity
Private equity (PE) dollars are continuing to flow into healthcare, despite continued concerns over profit motivations and the impact on quality. According to PitchBook’s Q4 2022 Healthcare Services Report, PE firms announced or closed an estimated 863 deals in 2022, making it the second highest on record for activity in the healthcare sector after 2021. Deal activity is expected to slow in the first half of 2023 but could potentially rebound in the second half of the year, depending on market factors.
Younger patients more likely to switch providers
Healthcare consumers appear to be increasingly comfortable switching providers to have their needs met, according to a report from Accenture. Switching providers is especially true among younger generations, like Gen Zers and millennial, who were six times more likely to switch providers than older people. Younger generations were found to increasingly value experience factors like customer service, convenience and trust over price.
Pandemic continues to affect healthcare employment
The COVID-19 pandemic, and the rapid subsequent changes of supply and demand in the labor market, will continue to have an impact on employment in the health industry (and the overall economy) for years to come. According to a Peterson and Kaiser Family Foundation health system tracker, utilization of health services has remained somewhat lower than expected (based on the trend in years before the pandemic), and health sector employment remains below pre-pandemic levels.
