What to do? Foresi expects hospitals to impose "a value-purchasing program" that would force doctors to find cheap alternative treatments, forcing market discipline on the health-services market.
That would put hospitals and doctors (rather than insurers or Congress) in the nasty but necessary position of having to say no to patients who want costly treatments.
That may be bad for hospitals, doctors, and patients, as things are currently run.
But change is always an opportunity for someone.
In this case, Foresi writes, it may be good news for health-care consulting firms like Huron Consulting Group Inc. and Navigant Consulting Inc., which could enjoy "solid long-term demand trends" as desperate providers seek help cutting costs so they can stay in business.
$17M for Alteva
Warwick Valley Telephone, a publicly traded phone service in Upstate New York and rural northwest New Jersey, says it is paying $17 million for Alteva L.L.C., the Philadelphia business-Internet and voice-over-Internet protocol firm founded by William Bumbernick, former Rhone-Poulenc-Rohrer executive and Gloucester County Republican politician.
The deal includes $11 million cash up front, $4 million in Warwick stock (it is publicly traded), and $2 million in "performance-based payments," according to Warwick officials.
Warwick plans to merge its US Datanet phone business with Alteva, boosting Warwick sales 30 percent, Warwick boss Duane W. Albro said in a statement. Alteva boss David Cuthbert called the two firms "complementary."
Alteva employs 26, is currently looking to hire six more - account managers and network engineers - and expects to continue expanding as a part of Warwick.
Planning Commission
