Through Q3-2017, investment in Health Information Technology & Services (HIT) remains vibrant and on record pace. HGP monitored 492 HIT investment transactions through Q3, representing 312 US and 180 non-US targets. While the pace of activity in the US grew at a 19% annual rate over the last 6-years, non-US HIT investing increased at a dramatic 47% rate. As striking as the deal volume increase…
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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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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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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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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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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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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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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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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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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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