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

Investing in Health Information Technology (IT) – Part III

Posted in Healthcare Services Investing

The importance of healthcare-focused information technology as a way to improve the quality while reducing the soaring cost of healthcare in this country and around the world cannot be overemphasized. The American Recovery and Reinvestment Act (ARRA), enacted in 2009, encourages the use of electronic health records, albeit with accompanying penalties against regulatory deadlines, to assure an easily-accessible, secure and integrated medical industry.

Galen Partners, a leading private equity healthcare company, focuses on growth equity investments in healthcare technology-enabled services, medical devices and specialty pharmaceutical companies. It has invested in over 70 companies since its inception in 1990 and has almost $1 billion under management. Galen actively participates in its investments ranging from $10 million to $30 million of P.E. capital; it currently has more than 22 active investments. Galen focuses on healthcare-related companies with proprietary products and services. Their investments focus on healthcare venture capital medical devices & technology, information technology & services and specialty pharmaceuticals.

A recently-completed deal is Sharecare, a provider of an interactive healthcare platform for end-consumers looking for information on health-related concerns from physicians, hospitals and other healthcare consumers; it also provides a platform upon which medical centers can establish a connection to share research.

Carefx, a subsidiary of Harris Corporation, focuses on closing the inevitable industry gaps in information technology. Their proprietary product, Fusionfx, provides improved clinical, financial and operational outcomes vital in providing accountable healthcare. Investors include The Carlyle Group, one of the world’s largest private equity firms, with more than $75.6 billion under management; Appian Ventures, a venture capital firm that is focused on Applied Connectivity technologies and which targets early-stage investments in real-time enterprise applications and infrastructure management software companies; CB Health Ventures, which manages $150 million of P.E. funds focused on investment opportunities in healthcare services, medical IT, biotechnology and genomics; UV Partners, an early-stage P.E. investment group that provides the basis for development of early-stage entrepreneurial concepts in IT and Life Science companies; and Village Ventures, which manages a network of early-stage venture capital funds in emerging technology centers, joining Bain Capital, Highland Capital Partners, Sandler Capital Management and Janus Capital Corporation supporting this endeavor.

Bain Capital Private Equity has raised 10 global funds and made over 250 investments since their inception in 1984. The private equity activity includes leveraged buyouts and recapitalization with a diversified portfolio. One of the leading investment firms in the world, Bain has approximately $60 billion in assets under management. Their 250 professionals oversee investments in the healthcare, telecommunications/technology, financial services and consumer products industries.

Bain Capital Ventures portfolio includes the following companies intrinsic in the healthcare IT field, as well as other areas of importance in the healthcare arena: ABILITY Network, a healthcare IT company that enables physicians and hospitals to connect securely via the internet to Medicare, other payers, and each other to process claims and exchange clinical information, is the largest, web-based, secure healthcare network in the United States. It makes possible millions of transactions daily and has more than ten thousand healthcare providers as customers, including most hospitals in the country. Enclarity provides information solutions to payers and large healthcare companies by combining multiple data sources, advanced analytics, and healthcare expertise into a master data set. Humedica, a next-generation clinical informatics company, provides innovative SaaS-based business intelligence solutions for the healthcare industry. Humedica provides healthcare providers, government agencies, financial services firms and life sciences manufacturers with the IT solutions needed in today’s ever-evolving health care market. MedeAnalytics provides performance management solutions to hospitals, payers, and other large health care institutions to improve operational, financial and clinical outcomes. They perform by collecting data from divergent sources, delivering information in a prescriptive manner to allow the transparency necessary to bring accountability to the system.

 

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