WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Analysts with Great American Group, Inc. (OTCBB: GAMR) report continued changes in the healthcare industry as hospitals and other healthcare entities face new challenges. Key changes include a pending tax reform for charitable tax deductions for donations made to nonprofit hospitals and healthcare providers, as well as the approaching October 1 deadline for the state and federal governments to begin open enrollment for the Affordable Care Act’s (“ACA”) Health Insurance Exchange. Analysts also report major changes in the retail pharmacy and drug store industry, most notably the transition of branded drugs to less-expensive generics.
“The added insurance coverage, however, requires additional costs and paperwork, which could particularly impact smaller businesses.”
“It is estimated that the ACA will provide insurance for 33 million Americans who did not have insurance before now,” noted Paul Arceri, director of Great American Group’s Industrial Appraisal division. “The added insurance coverage, however, requires additional costs and paperwork, which could particularly impact smaller businesses.”
According to Great American Group’s newest Healthcare and Pharmacy Monitor, performance across different sectors of the healthcare industry varied. While demand for medical equipment, supplies, and nutritional supplements has increased, companies in the wholesale pharmaceuticals segment continue to face challenges such as the transition of branded drugs to generics, as well as expiring patents.
The passage of the ACA was considered a boon to the retail pharmacy industry, as an increase in health insurance coverage is expected to generate significant demand for prescription drugs.
“It is unclear how the increased healthcare coverage will impact overall pricing,” explained Arceri. “Insurance companies and other health providers will be carefully monitored on how they spend their dollars. There will be more overall consumption, but fewer dollars per unit spent.”
Great American Group’s latest Healthcare and Pharmacy Monitor is available for download on the company’s website at http://www.greatamerican.com/news_media/downloads/Healthcare_Monitor_August_2013.pdf.
For more information about asset disposition or advisory and valuation services available through Great American Group, visit www.greatamerican.com.
About Great American Group, Inc. (OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, Melville, N.Y., New York, Norwalk, Conn., San Francisco, London, Milan and Munich. For more information, call (818) 884-3737 or visit www.greatamerican.com.