HEALTH & LIFE SCIENCES NEWS
HEALTH & LIFE SCIENCES NEWS
Exploring Critical Business and Legal Issues across the Healthcare and Life Sciences Industries
HEALTH & LIFE SCIENCES NEWS
Exploring Critical Business and Legal Issues across the Healthcare and Life Sciences Industries
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HPE Miami 2021: Subsector Insights | Women’s Care

The field of women’s care offers investors several excellent entry points for innovation and growth. McDermott partner Joshua Spielman moderated this conversation featuring insights from Michael Chang, partner at BC Partners; Robert LaGalia, president and chief executive officer of Unified Women’s Healthcare; and Uttara Marti, managing director at Evercore.

Access the PDF here.

Women’s health continues to be one of the most fragmented sectors of the healthcare industry, which means that there are ample opportunities for new entrants and existing platforms to innovate, integrate and improve the delivery of care in this space.

Women’s care providers have an opportunity to expand their core OB/GYN and fertility focus. Providing additional wrap-around services can drive incremental value.

Women’s health is uniquely able to take advantage of value-based care arrangements, but key obstacles must be overcome first, including scale, provider buy-in and access to the necessary data.

Fertility services remain a strong driver in the women’s health space. More and more, employers are providing fertility coverage and benefits, helping to drive access and volume in this sector.

To catch up on all of the sessions from the HPE Miami 2021 Conference, please click here.




HPE Miami 2021: Subsector Insights | Urgent Care

Greg Metz, co-head of McDermott’s Private Equity Practice Group, joined Simon Bachleda, co-founder and managing partner at Revelstoke Capital Partners; Richard Park, MD, founding chief executive officer of CityMD and co-founder of Ascend Partners; and John Randazzo, senior advisor, Warburg Pincus, to discuss how urgent care practices are expanding their service offerings and driving value.

Access the PDF here.

  1. In recent years, the service offerings available at urgent care centers have expanded beyond traditional “urgent care” into several ancillary services. “Historically, urgent care was for urgent needs, such as flu or strep or strains,” Bachleda said. “Now it has evolved to much more than just urgent, into primary care and ultimately even into multispecialty. A lot of ancillary services now can be offered seamlessly within the confines of the four walls of an urgent care center.” These include orthopedic services, and behavioral and mental health services. “As needs continue to evolve, urgent care is one of the most flexible areas of this market that is able to change with the times,” Randazzo noted.
  2. For urgent care practices, successful growth hinges upon standardizing the patient experience and developing a brand name with which patients are familiar and comfortable. “Making sure that patients know who we are and know [...]

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HPE Miami 2021: Subsector Insights | Pharmacy

McDermott partner Karen Gibbs joined Matthew Thompson, general partner at Enhanced Healthcare Partners, and Drew Walk, chief executive officer at Soleo Health, in an insightful discussion of what’s next for investment in the pharmacy space.

Access the PDF here.

  1. New therapies and the accompanying technologies to deliver them make pharmacy an appealing space for investment in 2021. In particular, organizations that can find ways to effectively manage escalating costs will be successful.
  2. The COVID-19 pandemic has highlighted the value and game-changing solutions that pharmacy can bring to the healthcare ecosystem at large. Pharmacy is an end point of care, and its extraordinary innovation is driving better patient outcomes.
  3. Regulatory scrutiny is always evolving in the pharmacy industry and should remain top-of-mind for any company considering an investment in the space.
  4. A transition to true and effective value-based care in the pharmacy sector will require significant collaborating between payers, providers, suppliers and manufacturers.
  5. COVID-19 has created headwinds in this sector because pharmacy is downstream from elective surgeries and other elective care. There is a backlog of care stemming from the pandemic, however, which presents an opportunity for accelerated growth in the pharmacy space moving forward.
  6. Innovations that help establish “arm-in-arm” relationships between physicians and pharmacists will help drive [...]

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HPE Miami 2021: Subsector Insights | Gastrointestinal

The past year saw robust deal activity focused on gastrointestinal (GI) practices, and the sector will remain an attractive target for private equity sponsors in 2021. McDermott partner Amanda Jester moderated this panel featuring Gabriel Luft, principal at Amulet Capital; Hugh McBride, principal at Kelso; Jason Porter, managing director at Baird; and James Weber, MD, chief executive officer at GI Alliance.

Access the PDF here.

  1. GI continues to be a popular PE investment. As a specialty, GI has proven to be stable and resistant to market changes, even amid economic and political shifts. GI groups also have the potential to provide ancillary services in-house, such as infusion, anesthesiology and pathology, which can increase their profitability and efficiency of care.
  2. The ability to scale has become increasingly important as GI groups contract with payors and health systems. GI lends itself well to scale, given the lower costs of operation and the ability to add ancillary services that can also be scaled. This ability to scale will likely continue to grow the value of GI businesses as we transition to value-based care.
  3. GI practices benefit greatly from the ability to perform procedures in outpatient facilities. Many GI groups now have their own, or are partnering with, ambulatory surgery centers [...]

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HPE Miami 2021: Subsector Insights | Dermatology

In this panel, Matt Leavitt, DO, founder and executive chairman of Advanced Dermatology & Cosmetic Surgery; Scott Bremen, chief executive officer of Forefront Dermatology; and Daniel Florian, managing director at Sun Capital Partners, discussed the impact of COVID-19 on the dermatology industry and the sector’s evolving future. McDermott partner Jason Caron moderated this insightful discussion.

Access the PDF here.

  1. The COVID-19 pandemic has given industry leaders an opportunity to take a fresh look at their businesses and focus on streamlining operations and improving their organization. Businesses have been able to focus on safety for their patients and employees, and to improve the efficiency of internal processes through the use of novel technology. “Telemedicine is not a short term band-aid, but a long term tool to enhance the patient experience,” Florian said. Despite the pandemic’s challenges, the public health emergency highlighted the value of communication among a strong and passionate group of providers dedicated to providing care in a safe environment.
  2. Demand for essential dermatological services throughout the pandemic proved to be robust and resilient. Thanks in part to increasing patient knowledge and interest in both the medical and cosmetic side of dermatology, this is a time of growth. “With the aging baby boomers and the size of [...]

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Three Digital Health Trends Affecting Investors in 2021

Private equity deal volume hit a low in the first half of 2020 as the pandemic slowed the US and global economies. But toward the end of the year, deals began picking back up, particularly in the digital health space.

COVID-19 forced healthcare providers to shift from in-person to virtual care, and technology was the vehicle to make that switch possible. Investors noticed, and more deals focused on companies specializing in telehealth, remote patient monitoring and other technology platforms that facilitate communication among specialists.

Expect this trend to continue in 2021, and keep these three factors in mind when evaluating the digital health landscape.

Easing of Laws and Regulations Surrounding Telehealth and Digital Health

Both telehealth and digital health are highly regulated, as every state has laws and regulations that govern how care is provided virtually and how those services are billed. In response to the pandemic, we’ve seen flexibility with these laws and regulations, and the Biden administration has signaled that it might make some flexibilities permanent.

Investment opportunities will likely increase as a result of the Biden administration’s willingness to lower some of the longstanding barriers to coverage and payment for virtual services, including telehealth, remote patient monitoring and other related services. That’s a positive sign for firms looking at healthcare through the lens of a technology solution.

Reallocation of Resources Due to Vaccine Rollout

Since the onset of the pandemic, labs have conducted a huge volume of testing and have had to ramp up personnel and other [...]

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Policy Outlook: How The 2020 Election Outcomes Will Impact Your Business – Health Policy

In this session, health law policy authorities discussed changes likely in 2021 in a Biden Administration and how these changes will impact business objectives and strategies for health industry stakeholders.

Below are the top takeaways for Policy Outlook: How The 2020 Election Outcomes Will Impact Your Business session: Health, click here to access the full webinar.

Access the PDF here

COVID-19
If Vice President Biden campaigned on anything, it was a more vigorous response to the pandemic. Look for a Biden Administration to make addressing the spread and restoring the economy top priorities early on. Another relief bill is likely, and maybe even in a lame duck session in 2020, but any relief measure will require Republican and Democratic support. Look at both the House-passed HEROES Act and the Senate Republican HEALS Act as likely starting points for discussion.

Affordable Care Act
Vice President Biden campaigned on sustaining and expanding health insurance coverage by enacting a public option to compete with commercial plans in exchange marketplaces. With Republicans likely to retain control of the Senate, legislative expansions of the ACA are unlikely. Instead, look to a Biden Administration to reverse or revise ACA-related regulations and Executive Orders advanced by the Trump Administration. Still, keep an eye on the Supreme Court’s consideration of California v. Texas, which could call the constitutionality of the ACA into question.

Prescription Drug Pricing
Both parties share the goal of addressing the cost of prescription drugs, and there [...]

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HPE New York 2020: Big Bankers Breakfast Discussion

In this lively panel session, global heads of healthcare at top banks analyzed the current market climate for healthcare services investing and provided their invaluable insights on hot sectors, growth strategies and the dealmaking outlook for 2021. McDermott counsel Charlie Ditkoff moderated this panel featuring Daniel Decelles, global co-head of healthcare investment banking at Jefferies; Matthew McAskin, senior managing director at Evercore; Jim Forbes, vice chairman of Morgan Stanley; Mark Francis, managing director and head of the healthcare group at Houlihan Lokey; and Cheairs Porter, head of the healthcare and life sciences group at Harris Williams.

Below are the top takeaways for HPE New York 2020 half day session: Big Bankers Breakfast Discussion, click here to access the full webinar.

Access the PDF here

The public markets have recovered remarkably from the lows of March and April 2020 and are currently seeing unprecedented deal activity, Mr. McAskin said. However, amid that activity, “there is no one solution that is working,” he said. “We are seeing financing work, we are seeing creative transaction structures work, and we’re seeing a resurgence of initial public offerings and special purpose acquisition companies like we have not seen for years or for decades. It’s a very confusing time for a lot of people, because we’re seeing these micro-cycles occurring very quickly.”

As might be expected in light of the Coronavirus (COVID-19) pandemic, valuations for tech-enabled healthcare businesses have risen significantly this year, and that trend will likely continue into 2021. “I [...]

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HPE New York 2020: The Impact of COVID-19: What’s Hot, What’s Not

In the wake of COVID-19 some health sectors have emerged as hot while others are troubled. Our panel of active investors discussed where the dollars are going and offered insights on why in relation to the events of 2020. McDermott partner Jerry Sokol moderated this dynamic panel featuring Paige Daly, partner at Harvest Partners; Chris Gordon, global head of healthcare and co-head of North America private equity at Bain Capital; Geoff Lieberthal, partner at Two Sigma Impact; and Rob Wolfson, executive managing director and head of H.I.G. Advantage Fund and U.S. Healthcare.

Below are the top takeaways for HPE New York 2020 half day session: The Impact of COVID-19: What’s Hot, What’s Not, click here to access the full webinar.

Access the PDF here.

COVID-19 has revealed weaknesses in the healthcare system and in healthcare delivery in particular. “One of the most fundamental things that we as healthcare investors all should be thinking about is investing in businesses that are making things better for the entire system—for patients, for providers and for payors,” Ms. Daly said. “That means we should be both raising quality and lowering costs.” These principles are driving some of the most exciting innovation today, particularly in payor services, physician practice management (PPM) and healthcare IT.

Healthcare IT generally and telemedicine specifically are areas of major investment. Dramatically accelerated patient and payor adoption of telehealth has created growth [...]

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HPE New York 2020: Healthcare Private Equity Pioneers

An illustrious group of healthcare private equity pioneers discussed how healthcare investing has evolved from inception to current state and what the future holds. Moderated by Michael Lewis, author of The Big Short, Moneyball, The Blind Side and Liar’s Poker, it featured insights from Senator Bill Frist, MD, founder of Frist Cressey Ventures; Annie Lamont, co-founder and Managing Partner of Oak HC/FT; Curtis Lane, founding partner of WindRose Health Investors; and Ira Coleman, Chairman of McDermott Will & Emery.

Below are the top takeaways for HPE New York 2020 half day session: Healthcare Private Equity Pioneers, click here to access the full webinar.

Access the PDF here.

Investment in healthcare private equity continues to accelerate, even amid disruption. In the past, healthcare made up only a small portion of private equity funds, but pioneers helped make it mainstream. “The amount of infrastructure, commitment and capability focused exclusively on healthcare is becoming commensurate with the size of healthcare relative to the economy,” Mr. Lane said. “I think that’s changed pretty significantly and is continuing to change very quickly.”

One of the most dramatic changes in the field of healthcare private equity since its inception is the ongoing transformation of the healthcare system and the opportunities that transformation has created for entrepreneurs outside of traditional healthcare roles. As virtual health companies and other digital-focused endeavors [...]

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