The firm targets companies in healthcare services, healthcare information technology, and less frequently medical devices. At approximately $2.8 trillion and growing in the United States, the healthcare sector continues to create tremendous opportunities for investment. Healthcare reform creates substantial changes, threatening some segments of healthcare while enabling new possibilities in others.

Within healthcare services and HCIT, reform directly presents opportunities in the individual and small group health insurance markets, in long-term care, and in Medicaid programs. Remote care delivery and monitoring will increase in importance. The behavioral sector will continue to grow and consolidate. And the continued application of information technology to transaction intensive components of the industry will drive cost reductions and margin improvements.

While the regulatory and reimbursement environments make the development of new medical technology more challenging than in recent years, there are still many great opportunities in medical devices. The key is to seek a new archetype of company, one with a recognized clinical need in a field where one can prove not only clinical results but also economic benefits to the physician, hospital, and payer communities. These companies will be capital efficient in getting to market, will have a concentration of volume to make sales force economics viable, and will be attractive to several potential acquirers.
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