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Prepare and Prevent Common Due Diligence Issues in Health IT Transactions: Accounting and Tax Considerations (Part 1 of 6)

Prepare and Prevent Common Due Diligence Issues in Health IT Transactions: Accounting and Tax Considerations (Part 1 of 6)

September 28, 2017

Over the next few months, HGP is publishing a 6-part research series covering a range of due diligence issues that are common to Health IT and Services transactions.  The 6 sections cover: Accounting and Tax, Legal, Human Resources, Operations, Intellectual Property, and Technology.  In today’s edition, we are covering the Accounting & Finance topics.

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The Ecosystems that Fuel Health IT Investment

The Ecosystems that Fuel Health IT Investment

August 31, 2017

Health IT is a geographically dispersed sector, yet certain locations are known for supporting strong Health IT ecosystems, such as Nashville, Boston, San Francisco, Chicago, Atlanta, and Madison.  These ecosystems are generally the result of large, incumbent corporations and institutions that fuel the intellectual capital and talent that are the foundation for the development of new enterprises.  During…

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The Tension Between Healthcare Pricing and Consumerism

The Tension Between Healthcare Pricing and Consumerism

August 10, 2017

Last year, HGP discussed the concept of Exploiters and Solvers in the healthcare industry.  The U.S. healthcare economy is indisputably inefficient.  Inefficient markets create opportunities for exploitation or solution.  Exploiters seek to exploit inefficiencies to maximize returns for a select few.  Solvers seek to eliminate inefficiencies to maximize returns for many.  In the context of healthcare,…

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HGP Releases its Mid-Year Health IT Market Review

HGP Releases its Mid-Year Health IT Market Review

July 13, 2017

Healthcare Growth Partners is pleased to release its Semi-Annual Health IT Market Review.  Our semi-annual report summarizes M&A and capital raising activity across health IT, health information services, and digital health. This edition of the report includes our analysis of valuation trends across core HIT sub-sectors, a discussion of economic pricing against the trend toward healthcare consumerism,…

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Demystifying the Pharmaceutical Supply Chain

Demystifying the Pharmaceutical Supply Chain

June 27, 2017

Healthcare Growth Partners (HGP) is demystifying the operations of the complex maze known as the pharmaceutical supply chain. In addition to the unnecessary complexity of the key industry players’ roles, their confounding dealings and the lack of price transparency make the pharmaceutical supply chain one of the most difficult to comprehend in healthcare. In order to understand the entire process…

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Valuations Round 2: Health IT SaaS vs Health IT Non-SaaS

Valuations Round 2: Health IT SaaS vs Health IT Non-SaaS

June 07, 2017

Last month, we blogged an analysis that compared public company valuation multiples of Enterprise (non-Health IT) SaaS with Health IT SaaS.  Our analysis uncovered that, when using growth as a variable, the two groups were nearly indistinguishable from each other. What was evident in the data is that Health IT SaaS companies aren’t growing as quickly compared to their generalist counterparts. If…

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Houston. Healthcare. Fossils. Profits.

Houston. Healthcare. Fossils. Profits.

May 22, 2017

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. …

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Enterprise SaaS vs. Health IT SaaS Valuation Analysis

Enterprise SaaS vs. Health IT SaaS Valuation Analysis

May 05, 2017

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…

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Q1-2017: Health IT Market Trends Look Positive

Q1-2017: Health IT Market Trends Look Positive

April 05, 2017

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…

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Trump's Healthcare Policy in Review

Trump's Healthcare Policy in Review

March 08, 2017

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. 

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