PE Deals

Patient Square Capital launches project to measure impact of patient care

Kelvin Baggett will lead Patient Square's EMPIRIC Institute as managing director, head of patient impact and chair.

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There’s a lot of talk at healthcare companies about improving outcomes for patients. Later this morning, Patient Square Capital is expected to announce an initiative to study and measure the impact of the private equity firm’s investments on patient outcomes and care across its portfolio companies.

Patient Square is naming Kelvin Baggett as managing director, head of patient impact and chair of the EMPIRIC Institute. An internal capability for the Menlo Park, California-based PE firm, EMPIRIC stands for Excellence in Medicine, Patient Impact Research, Innovation and Care.

Jim Momtazee, Patient Square Capital

Jim Momtazee, the managing partner of Patient Square, and Baggett spoke to PE Hub about the initiative and the potential impact on Patient Square’s dealmaking in an exclusive interview.

A methodology will be used that boils down the impact of a healthcare service or product to a single number.

“Effectively, we are taking a standard of care in the company we are invested in, whether that’s a product or a service, and then we are taking what the delta is based upon what we are doing,” Momtazee said. “We are measuring the delta based on the cumulative impact vis-à-vis the baseline for patients’ benefit into an objective number that we can measure and monitor.”

The institute will be integrated into the firm’s investment process as part of its transformation and growth team.

Kelvin Baggett, Patient Square Capital

“It can help us do more and better,” Baggett said when asked about the impact of the EMPIRIC Institute on dealmaking. “It can help shape where we invest in the future and where our investments today might actually inform different decisions, where if we invest in a service, drug or category, there’s an opportunity to have a greater impact.”

Good outcomes for patients work hand in hand with good investments, said Momtazee.

“I can’t remember a time where we made an investment and we liked everything about it, and was a horrible answer for patients,” Momtazee quipped. “Horrible answers for patients tend to be terrible investments as a healthcare investor. There tends to not be a sustainability to that business model for a long time.”