PE HUB Healthcare Wire, 9.13.18


Pamplona Capital, private equity, healthcare,
Sarah Pringle of Buyouts. Photo by Robert Daniel, Buyouts.

Targeting patients where they wait: Ads in the doctor’s office

Happy Thursday!

It’s that time of year. Bankers spent the summer pitching, winning and grieving over lost deal mandates with pints of Ben & Jerry’s – or Halo Top, if you’re as obsessed as I am. And now they’re sending out their deal books.

How does your post-Labor Day pipeline look?

At least a couple folks I spoke with this week said it feels a bit slower. As companies continue to see good growth, some PE firms seem to be holding off until 2019 to sell, one source suggested.

Slow or not, there was no shortage of news this week. One notable new opportunity that already seems to be creating noise in the market is Onex’s BrightSpring Health. The healthcare services giant that most of you probably still know as ResCare is in the early stages of deal discussions, I learned.

And, in the lower-middle-market — this just in: Varsity Healthcare Partners has a new platform that it’s calling Emergency Care Partners, I’ve learned.

Three Billboards Outside … your doctor’s office

The ad-driven business model is no longer what it used to be for journalists like me in today’s digital age. For drug makers, the times have also changed.

I spent some time getting educated about point-of-care marketing in healthcare this week after learning that one of the segment’s biggest players is kicking off a sales process later this fall. That’s L Catterton’s PatientPoint, which sells ads and educational content in physician offices, exam rooms and waiting rooms.

Read my story for financial details and adviser roles.

Before getting into industry themes, the timing of the process is intriguing. Less than a year ago, PatientPoint’s No. 1 rival, Outcome Health, faced allegations of fraud following a WSJ investigation – just months after the hot Chicago startup reported a whopping $5.5 billion valuation.

Turmoil followed. To summarize, big-name investors including GooglePritzker Group and Goldman Sachs filed a lawsuit against the company, claiming they had been misled about its performance. That settled in January when co-founders Rishi Shah and Shradha Agarwal stepped away from their day-to-day managerial duties. This summer they left the board and new management was installed.

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