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The Healthcare Investor

Insights on Issues & Trends that Impact Investments in Healthcare & Life Science Businesses

Tenet and USPI to Form Ambulatory Surgery Joint Venture

Posted in Healthcare Services Investing

Tenet Healthcare Corp. has announced it has signed a definitive agreement with United Surgical Partners International (USPI) to combine their short-stay surgery and imaging center assets into a new joint venture.

Tenet will initially own 50.1% of the joint venture, which will be the largest provider of ambulatory surgery in the United States. Private equity investor Welsh Carson and the other existing investors in USPI will initially own the remaining 49.9%.

Tenet will have the ability to acquire USPI over the next five years.

The joint venture, which will maintain the USPI brand, will have ownership interests in 244 ambulatory surgery centers, 16 short-stay surgical hospitals and 20 imaging centers in 29 states.

In a separate transaction, Tenet entered into an agreement to acquire Aspen Healthcare from Welsh Carson. Aspen operates nine private hospitals and clinics in the U.K. USPI owned Aspen until a restructuring of the USPI group in 2012, which resulted in Aspen becoming an independent company majority owned by Welsh Carson.

Healthcare & Life Sciences Private Equity Deal Tracker: OrthoSensor Secures $19 Million in Financing

Posted in Healthcare Services Investing

OrthoSensor has announced it has raised $19 million in a private placement of series C preferred stock.

OrthoSensor, based in Dania Beach, FL, is a developer of intelligent orthopedic devices and data services.

Participating in the financing round were Bridger Healthcare and The Tullis Growth Fund.

OrthoSensor indicated the funding would be used to support the commercialization of VERASENSE, the company’s disposable, sensor-assisted, total knee replacement device, as well as to expand product development.

Healthcare & Life Sciences Private Equity Deal Tracker: Cardiac Dimensions Secures $43 Million in Financing

Posted in Healthcare Services Investing

Cardiac Dimensions has announced the completion of a $43 million round of equity financing.

Cardiac Dimensions, based in Kirkland, Wash., develops minimally invasive treatment modalities to address heart failure and related cardiovascular conditions.

The funding round included investments from Life Sciences Partners, Aperture Venture Partners, Lumira Capital, M.H. Carnegie & Co. and Arboretum Ventures.

In a news release, Cardiac Dimensions indicated the proceeds of the round will be used to support the company’s REDUCE FMR clinical trial. REDUCE FMR is blinded, randomized clinical trial of a percutaneous mitral repair device in patients with functional mitral regurgitation (FMR).

Healthcare & Life Sciences Private Equity Deal Tracker: Daktari Diagnostics Secures $15.5 Million in Financing

Posted in Healthcare Services Investing

Daktari Diagnostics has announced it has closed a $15.5 million series D round of funding.

Daktari, headquartered in Cambridge, Mass., is a developer of portable diagnostic products.

The funding round was led by new investors Eastern Capital Limited and the Merck Global Health Innovation Fund. Existing investors Norwich Ventures and Partners Innovation Fund also participated.

Daktari’s CEO indicated the company’s near-term goal is to create a menu of tests for major infectious diseases that can run on the Daktari CD4 diagnostic platform in 15-30 minutes.

Behavioral Health And Other Rumblings From JPMorgan 2015

Posted in Healthcare Services Investing

Below is a link to view the latest entry from the monthly Law360 that we publish relating to healthcare private equity investments. This column was written by Geoff C. Cockrell, Amber McGraw Walsh and Richard S. Grant, McGuireWoods LLP.

We recently returned from our annual trip to San Francisco in conjunction with the JPMorgan Healthcare Conference. We and several thousand of our colleagues gathered for jam-packed days of meetings and, of course, a few after-meeting receptions, which have become de rigueur for the conference. After conversations with numerous health care private equity funds, lenders, investment bankers and companies, we can report on a number of recurring themes in the world of health care investment.

View the Law360 column “Behavioral Health And Other Rumblings From JPMorgan 2015.”

What King v. Burwell Could Mean for Insurers

Posted in Healthcare Services Investing

Most investors have likely heard about the King v. Burwell case, which addresses whether language in the Affordable Care Act allows the government to provide healthcare insurance subsidies to people across the country or only in those states with their own insurance marketplaces.

It will be argued before the U.S. Supreme Court on March 4.

In future posts we will describe more fully what the resolution of the case means for investors, but in the meantime, an interesting post from The Commonwealth Fund Blog provides insight as to what the case could mean for insurers.

View the post here.

4 Questions Providers Should Consider When Preparing or Responding to an Investigation

Posted in Healthcare Services Investing

BDO Consulting has published an interesting infographic we think healthcare investors may be interested in.

The infographic focuses on “navigating e-discovery in the healthcare datasphere.” It provides four questions providers (as well as legal counsel) should consider when preparing for or responding to an investigation.

The questions are as follows:

  1. Is your e-discovery process HIPAA-compliant?
  2. How digital is your data?
  3. Do you have a handle on your unstructured data?
  4. Will your structured data maintain its form in collection and review?

To view the infographic and read about why each of these questions is important, click here.

Healthcare & Life Sciences Private Equity Deal Tracker: Invuity Secures $20 Million in Financing

Posted in Healthcare Services Investing

Invuity has announced it has raised $20 million in equity.

Invuity, headquartered in San Francisco, is a surgical photonics company that develops devices to provide visualization of the surgical cavity. Clinical applications include breast and thyroid oncology, plastics, spine, orthopedic, cardiothoracic and general surgery.

The financing round was led by Wellington Management Co.

Invuity indicated that proceeds from the round would be used to accelerate company growth and further commercial initiatives across its product line of visualization devices.

One Week Until the 12th Annual Healthcare and Life Sciences Private Equity and Finance Conference

Posted in Industry Events and Announcements

The McGuireWoods & McGladrey 12th Annual Healthcare and Life Sciences Private Equity and Finance Conference will be held February 17-18 at The Ritz in Chicago.

Registration spots are still available. If readers are interested in attending, please contact Amber Walsh at awalsh@mcguirewoods.com for a registration discount.

This healthcare-focused private equity, lending and finance conference explores ways to successfully close transactions and achieve growth. CNN senior analyst and best-selling author Jeffrey Toobin will be the keynote speaker. The conference will include presentations by companies seeking investment or financing. In the past few years, this conference has attracted more than 500 attendees, the bulk of which are private equity sponsors, healthcare and life sciences operators, lenders and some vendors.

Additional cosponsorships are provided this year by Marwood and Duff & Phelps.

Learn more about the conference by clicking here. View the full agenda here, and register here.

CNN’s Jeffrey Toobin to Serve as Keynote Speaker at 12th Annual Healthcare and Life Sciences Private Equity and Finance Conference

Posted in Industry Events and Announcements

CNN senior analyst and best-selling author Jeffrey Toobin will be the keynote speaker at 12th Annual Healthcare and Life Sciences Private Equity and Finance Conference.

This two-day healthcare-focused private equity, lending and finance conference, which will be held February 17-18 at The Ritz in Chicago, explores ways to successfully close transactions and achieve growth. The conference will include presentations by companies seeking investment or financing.

Toobin, who is also a staff writer for The New Yorker, is one of the country’s most esteemed experts on politics, media and the law. With unparalleled journalistic skill, Toobin has provided analysis on some of the most provocative and important events of our time.

Learn more about the conference by clicking here. View the full agenda here, and register here.

If readers are interested in attending, please contact Amber Walsh at awalsh@mcguirewoods.com for a registration discount.