The Industry Opportunity
healthcare transformation

We believe there is a transformation currently underway in the U.S. healthcare system in the way care is delivered that will continue to accelerate under any number of scenarios in the evolution of healthcare.

investment opportunities

We believe this creates an abundance of attractive investment opportunities for those who have the vision and capability to capitalize on them. We are focused on the healthcare technology and related industry for several reasons.

Large And Growing Market That Requires Innovative Solutions

Historical Barriers To Value Based Care Are Eroding

Broad Universe Of Actionable Targets

Fragmented Industry Ready For Scaled, Well-Capitalized Leaders

Digital Health Acquisition – The Industry Opportunity
Digital Health Acquisition Business Combination Criteria

Large and Growing Market that Requires Innovative Solutions

In 2018, U.S. healthcare expenditures amounted to $3.6 trillion, or 17.7% of total GDP, according to the Centers for Medicare & Medicaid Services. The Centers for Medicare & Medicaid Services project U.S. healthcare expenditures will rise to $6.2 trillion through 2028, or 19.7% of GDP, representing a 5.4% CAGR. We believe that all constituencies in the healthcare system will continue to invest in new and innovative technologies and business models aimed at reducing the friction in the patient care journey, and delivering care in lower cost, higher value ways to slow growth in healthcare spending and avoid the harsh human and political realities of reducing the levels of care in our country.

Historical Barriers to Value Based Care are Eroding

The evolution to true value-based care has faced several key challenges historically. Consumers are forced to make some of their most impactful, life altering health and economic decisions in a complex ecosystem devoid of reliable cost or quality information and with limited meaningful engagement with their clinicians to inform their choices. Providers are forced to deal with shortages of essential clinicians and lack actionable electronic health information as a result of disparate sources of data to inform clinical decision and improve health outcomes. Payors struggle to engage with consumers to take ownership of their health and are often at odds with providers rather than working together with aligned interest to deliver better health outcomes and cost savings to the system.

Fortunately, driven by the realities facing the system, these structural barriers are being eroded by a confluence of factors, including technological advancements, a new generation of technology savvy providers and consumers, and an evolution of the payor systems to value-based care.  The recent COVID-19 pandemic combined with, what we view as a new class of, visionary entrepreneurs fueled with billions of dollars of investment capital are accelerating the changes. We believe the accelerating structural changes will continue to provide unique opportunities for the next generation of companies that leverage technology and information to drive change in a U.S. healthcare system increasingly adopting digital healthcare solutions.

Broad Universe of Actionable Targets

There is a large universe of targets in the healthcare industry for us to pursue, due in part to the scale of the industry as well as the innovation and technology-enablement currently underway. Most of these targets are held by private equity or venture capital investors with finite investment horizons, who naturally will look to exit their positions. We believe that there are approximately two thousand technology-enabled, information-driven healthcare companies and of such companies, there are approximately two hundred of appropriate size and scale ready for public markets. We believe that of such two hundred companies ready for public markets, there are one hundred with software and tech-enabled platforms with a considerable existing breadth of solutions. We believe that of these one hundred companies, there is a universe of approximately seventy companies with an innovation focus, deep competitive moat and few direct competitors to pursue. We believe we will offer a differentiated value proposition to potential targets, with a more streamlined and transparent path to the public market that will enable private companies to go public while allowing them to remain operationally focused on long-term value creation.

Fragmented Industry Ripe for Creation of Scaled, Well-Capitalized Leaders

Many companies have developed partial solutions to address specific challenges of certain constituents across the healthcare journey. However, few if any platforms offer comprehensive solutions that meet the full spectrum of needs for consumers, providers, payors and employers and the landscape remains highly fragmented. We believe this presents an attractive opportunity to create long-term, risk-adjusted shareholder value by building a comprehensive, technology-enabled business that better meets the needs of healthcare constituents through add-on acquisitions and cross-selling in a market that is ripe for consolidation.