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PE HUB Healthcare Wire, 9.6.18

Exploring opportunities in concierge medicine

It’s Thursday, and like it or not, that post-Labor Day madness is underway.

I’ve spent most of the shortened week playing catch-up after a hiatus from healthcare private equity. Who else out there is still piecing together their life after a final summer hurrah?

Or, more importantly, what new deals in the market are creating noise now that everyone’s back in the office? Send me a note, or feel free to use the anonymous tip line on PE HUB.

It also wouldn’t be a return to reality without another healthcare conference underway. On Wednesday, I stopped by R.W. Baird’sGlobal Healthcare Conference in NYC to chat with an executive of the firm’s private equity arm.

One of my favorite things to ask investors is about their biggest regrets. That is, what deals/verticals of investment do you regret passing on, or which segments were you too late to the ballgame to find an attractive opportunity? Some hate the question, of course, but that’s my job.

Michael Bernstein, who leads Baird Capital’s healthcare efforts in the U.S., told me his biggest areas of regret fall into two categories: concierge medicine and medication assisted therapy for opioid addiction.

Concierge medicine, for its part, refers to preventative medicine and customized primary care offered to patients for a hefty annual fee. The idea is that patients get more face time, preferential services and immediate access to doctors who are seeing fewer patients per day than your typical practice.

Bernstein said he continues to find concierge medicine an appealing area for investment, but acknowledged that it’s not solving a healthcare-cost issue or a shortage-of-doctor issue. Rather, the growth in “just-in-time medication” simply shows that the populations that can afford it like it, he said.


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