Emerging Jobs and Salary Levels in the Health Care Industry

What salary levels can be expected for key jobs in the health care industry? Since the health care industry is going through transformation due to legislative reform, as well as increased merger and acquisition (M&A) activity, certain jobs will increase in demand and their salary levels will be impacted as a result.

Based on recent research, we can expect to see an increase in M&A activity in the health care sector resulting in the following trends:

• Increased targets of physician practices, diagnostic imaging, and ambulatory surgery centers.

• Limited access to capital markets/financing and more financially distressed targets.

• Those who have capacity from earlier investments are doing the acquiring.

• Emergence of Health Care Information Exchanges (HIEs): integration of electronic, patient-centric and decentralized clinical systems into a reportable database structure.

• Concept of Accountable Care Organization (ACO) established: the health care provider moves to one system that offers all the health care a patient needs “under one umbrella” with a primary care doctor as the “coordinator.” Expect to see more integrated health systems like the Mayo Clinic, world renowned for quality health care provider.

• Increased third party service providers and outsourcing which enable services without capital investment (e.g., revenue cycle management, medical billing, and medical coding).

The most recent and largest hospital related acquisitions include:

• Community Health Systems acquired Tenet Healthcare for $7.3 billion in Q4 2010.

• Vanguard Health Systems acquired Detroit Medical Center for $1.3 billion in Q2 2010.

• Cerberus Capital Management acquired Caritas Christi Health Care for $830 million in Q2 2010.

Recent HIE related M&A announcements include:

• Harris acquired Carefx for $155m in Q1 2011.

• Aetna acquired Medicity for $500m in Q4 2010.

• Ingenix (United Healthcare Business Unit) acquired Axolotl in Q3 2010 with terms of deal undisclosed.

So in an environment of transformation, what jobs are expected to increase in demand and what are the respective salary levels?

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Salary Levels










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