M&A seen as leading growth strategy in GE Capital survey

BETHESDA, MD - January 14, 2014 - Seventy-seven percent of healthcare executives expect business performance to be stronger in 2014, according to a survey released today by GE Capital's Healthcare Financial Services business, and nearly the same percentage (75 percent) plan to invest aggressively in their business over the next 12 months, employing various strategies. M&A was cited as the primary strategy (38 precent), followed by revitalizing existing offerings (36 percent) and launching new segments or lines of business (26 percent).

GE Capital conducted the survey in advance of the JP Morgan Healthcare Conference, held in San Francisco January 13-15. Respondents included 418 senior executives from pharmaceutical and medical technology companies, hospitals, healthcare service providers and health systems, as well as other industry stakeholders, who discussed their industry and company outlook for 2014.

"While there is uncertainty for many of these companies about exactly how the Affordable Care Act will affect them, a large majority are confident that 2014 will present attractive investment opportunities to drive growth," said Al Aria, senior managing director of GE Capital, Healthcare Financial Services' corporate finance team.

Additional findings from the survey include:

Industry Outlook: Fifty-four percent of respondents anticipate the healthcare industry will perform more strongly in 2014 versus 2013. Thirty-five percent forecast it will perform the same with just 11 percent expecting it will perform weaker.

Challenges: Over half (57 percent) of respondents believe the Affordable Care Act changes / implementation will be the greatest challenge for the healthcare industry in 2014, followed by regulatory scrutiny (20 percent) and the U.S. economy (13 percent). Far fewer executives cited challenges in access to financing (8 percent) and rising interest rates (2 percent) as their predominant concern.

Financing: Fifty-five percent of respondents noted that acquisition financing will be most important form of financing for their business over the next 12 months. Respondents also cited recapitalization driven by company-specific considerations (16 percent) and refinancing to extend or improve terms on current credit facitlities (14 percent) as top-of-mind in 2014.

Editor's Note

The GE Capital, Healthcare Financial Services survey examined the expectations of a total of 418 senior executives within the healthcare industry. The survey was conducted online with percentages based on those that responded to each individual question.

About GE Capital, Healthcare Financial Services

With in-depth industry knowledge and expertise, GE Capital, Healthcare Financial Services has provided more than $65 billion in financing to companies in over 45 healthcare sub-sectors including healthcare services, senior housing, hospitals, medical offices, outpatient services, pharmaceuticals and medical devices. Our team of professionals creates business and financial solutions tailored to meet the individual needs of our customers. For more information, visit gecapital.com/healthcare.

GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (@GECapital and @GELendLease). GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. For more information, visit the company's website at www.ge.com.

Contact:

GE Capital, Healthcare Financial Services

Maria Moreno

(301) 664-9859

MariaC.Moreno@ge.com

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