COVID-19 has impacted perhaps no industry in such a complex way as healthcare. Join Mark Dietrich in this discussion of items to consider before you forecast the likely impact on the healthcare industry of the current crisis. First, it is necessary to understand where the industry was before COVID-19 and then to understand what the crisis revealed about the allocation of resources. Second, you need to consider where future spending will be directed and how that future spending will drive cash flow and value. All valuation is forward-looking, and the history we rely upon in forecasting may no longer serve us well.

• Valuation date and subsequent events (Dec. 31, 2019, vs. Feb. 29, 2020, vs. March 31, 2020)
• Cost of capital considerations
• Income approach (cash flow)
• Market approach
• SBA loan programs and impact to BV analysis
• Family law considerations
• Practice development areas
• Financial projections—impact on growth rates, margins
• DLOMs

• Decline in inpatient beds

• Decline in inpatient days for several decades

• Growth in outpatient services

• Regulatory burden

• All healthcare is local

• Supply chain

• Revelations about the healthcare industry

• Responses of the industry, government, payers, and consumers

• The impact on value

• Describe some areas of impact of COVID-19 on valuation
• Restate impacts of SBA loan programs
• Describe potential impact of the COVID-19 on cost of capita

• List different regulatory burdens

• Describe revelations about the healthcare industry and supply chain