Jackson Walker partner Phil Kim was featured in Mergermarket to discuss the One Big Beautiful Bill Act (OBBBA) and how its 15 percent cuts to Medicaid payments to states – approximately $1 trillion over 10 years – are impacting mergers and acquisitions in the healthcare industry.

M&A activity in the United States has seen a major decrease of 28 percent in the third quarter, resulting in the lowest quarterly total since the first quarter of 2015. Mergermarket reported that multiple healthcare providers and companies in the process of sales and mergers have been stalled following the cuts, due to market conditions and valuation concerns.

Phil, who recently advised a mid-sized healthcare provider on adjusting its valuation model, commented on how the changes to Medicaid have created strategic opportunities for certain buyers and sellers.

“Companies hesitant to move forward risk missing a narrowing window to capitalize on market adjustments,” Phil told Mergermarket.

To read the full Mergermarket article, view “Medicaid cuts not what the doctor ordered for healthcare M&A.”

Meet Phil

Phil Kim is a partner in Jackson Walker’s Dallas office and is Chambers-ranked in Healthcare & Life Sciences. Phil advises providers and industry participants on complex transactional and regulatory matters. He counsels private equity firms, digital health companies, health systems, hospitals, pharmacies, ambulatory surgery centers, physician groups (including NPHOs), home health providers, hospices, and other healthcare companies on buy- and sell-side M&A, joint ventures, and operational issues encompassing regulatory, licensure, contractual, and administrative considerations. Phil has led regulatory legal teams on a wide range of healthcare transactions, including some of the most significant multi-billion dollar deals in the sector.