Themes

WHERE WE SEE OPPORTUNITY

We seek management teams and companies focused on improving quality, increasing efficiency and/or lowering the costs of healthcare. We see numerous specific themes giving rise to opportunities for achieving these goals, including:

Consumer Convenience and Value

Armed with increased access to medical information, patients are insisting on a greater role in their choice of care. In addition, many patients are increasingly responsible for a significant portion of the costs of their own healthcare above and beyond their health insurance premiums. This cost shifting is causing consumers to choose more cost-effective settings for their care. As a result, the opportunity for companies delivering convenience and value to the healthcare consumer is substantial, and potentially attractive to us.

Elder Care

The aging of the population is likely to drive healthcare expenditures for decades into the future. Efficiently caring for an older population requires focused and active management of patients’ chronic medical conditions and the disorders specific to the elderly. Opportunities to care for the elderly outside of traditional expensive care settings or treatment centers are potentially attractive to us.

Specialization

New companies, highly focused either on a specialized service or a new care setting, typically have an advantage in terms of efficiency and cost-effectiveness over long-established service providers, such as general hospitals. Such specialized service providers are potentially attractive to us.

Legislative & Regulatory Changes

Healthcare costs continue to rise rapidly, putting pressure on the system and compelling payers to seek alternative approaches and more cost effective ways to deliver service. This is often implemented through changes in reimbursement rulings issued by the Centers for Medicare and Medicaid Services (“CMS”) and from private payors seeking lower cost alternatives to traditional healthcare delivery methods. In addition, the inevitable changes to the Affordable Care Act will also lead to revised healthcare models and consequent investment opportunity. Companies that respond to these changes, providing efficient solutions to the administration of healthcare in the new contexts are potentially attractive to us.

Influence of New Technology

The continued development of new technology, drugs, and medical devices creates change in the standard of care in treating many illnesses and injuries. The advent of such new treatments can allow for the development of services businesses, and product businesses, specializing in the efficient delivery of these higher quality or more cost effective therapies, and such companies are potentially attractive to us.