One Equity Partners is expected to announce later Wednesday morning that the firm has completed a strategic investment in InfuCare Rx, a provider of infusion therapies and therapy management services to patients with complex chronic conditions. The firm partnered with InfuCare founder and CEO Deven Patel, who continues to own a significant stake in the company. PE Hub interviewed Greg Belinfanti, OEP senior managing director, about the transaction and the trends in home healthcare.
Why is OEP investing in home-based care? What’s the overall opportunity?
InfuCare is aligned with OEP’s thesis that care will continue to shift from institutional settings towards the low-cost home setting and that home-based management of complex chronic conditions will be increasingly important. The home and alternate site infusion market is large and growing, and OEP believes future demand will be driven by increasing prevalence of patients with chronic conditions and the need to provide services in a cost-effective care setting.
Recently, we’ve seen that the preference for at-home care has been accelerated due to covid-19 as patients and providers want to avoid on-site facilities and institutional settings. The rising incidence of hospital-acquired infections across facilities is increasing the demand for home infusion therapies to minimize ​this risk.
OEP has been following the general shift in care dynamics towards the lowest-cost care setting as payors push for cost savings. Specifically, with InfuCare, infusion therapy delivered in the home provides patients with the lowest cost of care relative to other alternatives and is always preferred by the patient.
What are the challenges facing companies that provide home-based healthcare products and services?
Many companies in the home-based care space lack the infrastructure and patient care management tools to properly track patient progress, adherence to therapies and responses to the treatment. Because chronic patients are expensive, payors are especially focused on their long-term care and management of their overall conditions.
How does InfuCare address these challenges?
InfuCare deploys a care coordination model that ensures patients are adhering to treatment regimens, which helps to reduce readmission rates. 95%+ of patients who are dependent on IV medications prefer to be treated in the home, and InfuCare offers a comprehensive suite of therapies and care coordination and proprietary technology platforms that manages the patient experience and adherence to the therapy regimen.
What are the add-on opportunities for InfuCare?
InfuCare operates in a large and fragmented $14 billion industry where operators benefit from scale and density. We believe InfuCare is an excellent platform to consolidate the market and bring the company’s infrastructure, clinical resources and coordinated care plan to new regions and customers.
What else has OEP invested in with a similar model?
OEP’s healthcare investments focus on improving the patient experience, improving healthcare outcomes and reducing healthcare costs. Our recent healthcare investments all focus on improving outcomes in the post-acute space, ranging from outpatient facilities to the home. Prior and current investments include Simplura (home health services provider to the Medicaid population), AMT/Restorix (wound care management and services provider to in the SNF and outpatient clinic settings), Ernest (post-acute healthcare services across IRFs and LTACHs), and AdaptHealth (DME distributor to the home).
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