HCP was formed to assist companies in the care delivery, information technology, diagnostics and medical devices segments of the healthcare market where our partners have deep domain expertise. As part of the delivery category, we will also invest in companies that aid in the infrastructure and other mechanisms necessary to deliver biotech solutions.
- HealthCare Delivery and Information Technology – New business models and the HIPPA regulations, which capitalize on outsourcing or advances in healthcare information technology, will generate cost efficiencies and/or improve patient outcomes. Significant opportunity exists for effective healthcare information technology solutions that can create value by shifting transactions to an electronic format and using healthcare information technology to reduce costs and increase positive patient outcomes. According to the Gartner Group, “… the average American hospital’s operating budget for IT will grow at 10-15% a year in 2003-05.” The drivers for increased spending include, “. . . consumer pressure, a shortage of nurses and technicians, the threat of having to deal with bioterrorism and pressure for pay-for-performance from insurers and big employers, whose health-insurance costs are soaring.” In addition, substance abuse and behavioral health concerns continue to be a major cost drain on the healthcare system. HCP believes that there are significant opportunities to fund addiction-related therapies and technologies to address this need. HCP also focuses on companies that offer methodologies for delivering biotech solutions into the human body and into alternative care settings.
- Medical Devices and Clinical Diagnostic – Rapid innovation is addressing unmet medical needs through the development of new technologies to treat or diagnose chronic disease. The trend today is continuing to move toward “managing disease” rather than curing a medical condition, primarily using molecular diagnostic tools and therapies that target the effected organ at the cellular level. The emergence of medical devices designed to diagnose and treat medical conditions, such as additional minimally invasive surgical devices to treat breast and cardiac disease, implantable therapies (stem cells and gene therapy), new nuclear digital imaging technologies, and diagnostic tools resulting from the mapping of the human genome, are increasing market potential.