Healthcare Growth Partners is proudly based in Houston, Texas, home to the world’s largest medical complex, the Texas Medical Center. The TMC, which itself is the 8th largest business district in the US, encompasses over 9,200 patient beds and serves over 10 million patient-encounters each year. The TMC is home to the world’s finest clinicians, academics, researchers, and students. …
Read More
We’ve often found ourselves questioning why it feels like the Health IT SaaS sector trades at a discount to the broader Enterprise SaaS market. While Health IT definitely has its share of high multiple companies like HealthEquity and Teladoc, the vast majority of publicly traded HIT SaaS companies trade in the 3x to 5x revenue multiple range. On the other hand, generalist Enterprise software companies…
Read More
Coming off the election in November, stock markets thrived on the expectation that a Trump administration would reduce regulatory burdens and lower tax rates. President Trump’s first days in office brought many changes to executive policy, including his top priority of repealing and replacing the Affordable Care Act. Odds-makers presumed legislation would pass given the Republican majority in both…
Read More
In our most recent edition of HGP's Health IT Market Review from January, we published a snapshot from Frost and Sulivan on what elements of the ACA were most likely to get the axe under the new administration. With the new American Healthcare Act now under review in the House, it seems like a good time to compare those predictions to what has been proposed.
Read More
We believe the next chapter for health IT is likely to perpetuate initiatives around value-based care but using dramatically different forces: the Trump administration is forcefully advocating free-market levers in healthcare and across all sectors, with a focus on de-regulation, price transparency, and patient responsibility. While the catalysts may change, the simple objective remains the same…
Read More
The common threads between the four key influencers in the Trump healthcare administration are de-regulation, price transparency, and patient responsibility. We are potentially entering a very different era from the Obama administration. Since enactment of the ACA, the health IT market has been undergoing more than five years of government mandates around technology adoption. HGP has described…
Read More
Ever since the introduction of HITECH, the health IT market has evolved like a game of Whac-A-Mole. Vendors are constantly reacting to a steady mandate of feature requirements, alternative payment models, quality reporting, and compliance provisions. This reactive cycle perpetuates itself with each policy change. On the surface, one might get the impression that market forces are driving HIT innovation.…
Read More
This spring, HGP surveyed approximately 400 private equity funds across all stages and received 94 responses. Responses concentrated toward Venture Capital and Growth Equity investors, who respectively invest in early and earlier stage companies. The distribution of responses across the stages of investing is consistent with the distribution of investment activity across the company lifecycle. While…
Read More
The United States is the largest economy in the world and has been since 1872. With GDP of $16 trillion, the U.S. comprises over 19 percent of global GDP. Although the size of the economy rivals China, per capita GDP in the U.S. is nearly 5x that in China. The vibrant U.S. venture capital community is responsible for funding 68 percent of the world’s innovations. Nine of the world’s top 10 medical…
Read More