Workstream 5: Private Equity Health Investments

Private investments in health that maximize returns to U.S. health status and economical productivity.

Problem Statement

Private equity and venture capital investments in important components of the medical care delivery system represent substantial and growing influences on operations and outcomes. The primary aim of these investments—as with all investment strategies—is to earn profits for investors, and hopefully doing so by improving health outcomes and achievement of patient goals. Some investors hold that their primary aim is to improve outcomes and goals, while hopefully also earning profits. Regardless of starting points, more information is needed on the nature and results of these investments—for individual, family, and community health, and for national productivity and competitiveness.

Workstream Charge

The Private Investments in Health workstream will uplift alignment challenges, opportunities, and impacts related to private equity and venture capital investment in health. Workstream members will produce a background paper that will inform Commission deliberations on the associated opportunities, priorities, and implications dependent on correcting the alignment of values, incentives, policies, and actions.

The paper will:

  1. review status and trends for private equity and venture capital health investment;
  2. describe how lack of alignment between private equity/venture capital investment decisions and investments that maximize health hinder national productivity and competitiveness;
  3. identify salient contributors to the problem;
  4. identify accountability disconnects;
  5. estimate the health and economic costs of maintaining the status quo;
  6. estimate the potential health and economic gains from private equity/venture capital investment in the production of health;
  7. identify legal, regulatory, or cultural levers to drive the change from where we are now to a better future state; and
  8. describe promising strategies for marshaling the will to deploy the necessary levers at the right place, at the right time.

Workstream Members

Chair

Bob Galvin
Chair | Advisor, Blackstone

Members

Cici Ceralde
Director of Venture Insights, McKesson Ventures
Bailey DeVries
Associate Administrator, Office of Investment and Innovation, U.S. Small Business Administration
Navid Farzad
Partner, Frist Cressey Ventures
Christina “CJ” Jenkins
Co-founder, Convergent Ventures
Miriam Laugesen
Associate Professor of Health Policy and Management, Columbia University
Josh Makower
Executive Chairman & Founder, ExploraMed, Inc.
Lisa Piercey
Founder, Tristela Capital Partners
Dan Polsky
Bloomberg Distinguished Professor of Health Economics, Johns Hopkins University
Peter Slavin
Operating Partner, Advent International
Zirui Song
Associate Professor of Health Care Policy and Medicine, Harvard University
Nancy Sullivan
CEO and Managing Director, Illinois Ventures
Daryl Tol
Lead, Health Assurance Ecosystem Portfolio, General Catalyst
Jane Zhu
Assistant Professor of Medicine and Health Systems Management and Policy, Oregon Health and Science University