One more move with private equity investments in healthcare. If you look at the MSD website you can see a multitude of devices/software listed that they distribute including home care products to include items that have been recalled too. If you are a regular reader of this blog, you know the proposed campaign and solution for that end of the equation. If not, use the link below and read up on how cell phones could become a one stop click to find FDA recalls.
One of the focuses of MSD is to improve and grow the delivery of drugs and devices to the home. They operate several “fulfillment” houses across the US, which is in essence a warehouse that fills the orders that come in.
No current private equity investment in healthcare would be complete without an investment in the payer side too so you can see where one of the current holdings of WaterStreet includes “HealthPlan Holdings”, again an area that I consider overdone with way too many algorithms and competition to see who can build the best solution for transaction profits. We certainly need such services but over the years that part of the industry has learned how to feed itself and grow with transactions that are for the most part hidden from what the average consumer reads and sees.
Below is a clip from the website from a former J and J executive who has joined the company and how he likes their business approach and I’m sure some of this helps to create the salary he has today too, as the dollar never ceases to attract and gave him a place to go upon retirement and I mention this as it is not unusual to see former corporate executives at the helm of many private equity companies.
The lure of profits at private equity firms is so attractive that we even see executives like the former CEO of United who was caught backdating stocks a few years ago joining firms as such. These folks tend to get recycled and they go where the money is and hopefully are better business men today.
Former CEO of United HealthCare Joins Private Equity Firm as an Operating Partner With Focus on Healthcare
As a matter of fact the growing interest in private equity is so large that they have now created a non profit trade association to where they can all figure out how to make more dollars, kind of ambiguous you might say as at least they could get their association out of the non profit mode as this is not a hospital or healthcare type of business.
How Big Are Private Equity Investments in Healthcare – Large Enough to Create a “Non-Profit” Trade Association To Talk About How to “Profit”
Even the lure of profits doesn’t escape former government directors too such as Mike Leavitt, former HHS director for the US government. Tony Blair, formerly of the UK has also left the country and is over here in the US involved with using his expertise and contract to help promote private equity firms, so this is like a virus all over with both corporate executives and former government officials working to promote profits, for the companies and themselves.
In a related article you can see how private equity firms are realizing the profits from some insurance carriers too with using their algorithms for profit and growth. Keep an eye open out there for subsidiary actions as this is what goes on a lot behind the scenes, not necessarily hidden, but somewhat resides below the line with lack of recognition and news.
Two Private Equity Firms to Buy Medical Care Provider Multiplan – ValuePoint Plan Connects to UnitedHeatlhGroup
Back on track here, just keep your eyes open to keep on top of where all the investors in healthcare are coming from and what the bottom line intentions are for profitability as these firms will be combining companies with data connections in new ways that have not perhaps been done before and to create profits you are going to see some very different intelligence at work…in other words we are back once more to the algorithms. BD
CHICAGO, July 30 /PRNewswire/ -- Water Street Healthcare Partners, a leading private equity firm focused exclusively on health care, announced today that it has acquired Medical Specialties Distributors, LLC (MSD). Headquartered in Stoughton, Massachusetts, MSD is the nation's leading provider of infusion products, supplies, biomedical services and technology solutions to the growing home infusion therapy market. The acquisition expands Water Street's current group of health care companies to 12.
With U.S. demographics shifting toward an older population and an increasing number of people suffering from chronic conditions, the Centers for Medicare and Medicaid Services projects that home health care expenditures will reach more than $90 billion by 2014. As demand for providing intravenous (IV) therapy to people in their homes continues to increase, MSD has grown to serve more than 4,000 customers. The company supports a broad base of customers including specialty pharmacies and home infusion companies, such as Accredo Health Group, Inc., Coram Specialty Infusion Services and Walgreens Health Initiatives, Inc., as well as oncology clinics.