Healthcare Investment Philosophy

Built on the Triple Aim framework: improving patient experience, reducing per capita costs, and improving population health

The Triple Aim Framework

01

Improving Patient Experience

Enhanced quality and satisfaction with care delivery across all patient touchpoints

02

Reducing Per Capita Costs

More efficient resource utilization while maintaining or improving care quality

03

Improving Population Health

Better outcomes across patient populations through preventive and proactive care

Core Investment Principles

1. Value-Based Care Leadership

Healthcare's transition from volume-based to value-based payment models represents the most significant transformation in healthcare financing in decades.

  • Companies demonstrating measurable ROI improvements (target: 3:1 minimum)
  • Organizations successfully operating under risk-based contracts
  • Technology platforms enabling outcome measurement and care coordination

Example: FasPsych Success

FasPsych's telepsychiatry model generates $4 for every $1 invested while solving hospital staffing challenges—perfect alignment of value creation and healthcare improvement.

4:1 ROI

Market Advantages

  • Less competitive investment environments
  • Strong community partnerships and loyalty
  • Government policy support and reimbursement advantages
  • Meaningful social impact aligned with financial returns

2. Underserved Market Strategy

Healthcare companies serving underserved markets often face less competition while addressing critical societal needs, creating sustainable competitive advantages.

Geographic Focus:
  • USDA-defined rural areas with limited healthcare access
  • Urban communities with healthcare professional shortages
  • Medically Underserved Areas (MUAs) and Health Professional Shortage Areas (HPSAs)

3. Technology-Enabled Innovation

Healthcare technology should enhance human care delivery rather than replace it, focusing on tools that demonstrably improve outcomes while reducing costs.

Technology Investment Criteria:
  • Proven Clinical Validation: Evidence of improved patient outcomes
  • Economic Justification: Clear ROI metrics for healthcare providers
  • Scalability: Ability to serve large patient populations efficiently

Preferred Technologies

  • Predictive analytics for early disease detection
  • Remote patient monitoring systems
  • AI-enhanced diagnostic tools
  • Telemedicine platforms with outcome tracking

Strategic Approach

  • Monitor CMS payment model evolution (2026 ESRD reforms)
  • Invest in companies positioned ahead of regulatory transitions
  • Focus on organizations with compliance infrastructure
  • Partner with management teams that understand value-based care

4. Regulatory Preparedness

Healthcare companies that anticipate and prepare for regulatory changes often capture disproportionate market share during transition periods.

Investment Sector Expertise

Behavioral Health & Mental Healthcare

Market Opportunity:
$102B telepsychiatry market growing at 16.6% CAGR
  • Critical access gaps in rural areas
  • Technology solutions enabling scalable delivery
  • Strong ROI potential with demonstrated cost savings
  • Government policy support for access expansion

Kidney Care & Chronic Disease

Market Opportunity:
CMS payment reforms in 2026 creating opportunities
  • Preventive care demonstrating substantial savings
  • Technology-enabled early detection
  • Home-based treatment models
  • Rural markets underserved by traditional providers

Medicare Advantage & Senior Care

Market Opportunity:
54% of Medicare beneficiaries with continued growth
  • Risk-based contracts rewarding population health
  • Technology infrastructure requirements
  • Integration opportunities across care settings
  • Social determinants becoming covered benefits

Due Diligence Framework

Clinical Validation

  • Patient satisfaction scores and Net Promoter Scores
  • Clinical outcome improvements
  • Cost reduction documentation with third-party validation
  • Quality metrics aligned with CMS requirements

Financial Performance

  • Minimum 3:1 return on invested capital
  • Clear path to EBITDA margins of 15%+ within 24 months
  • Revenue growth rate of 20%+ annually
  • Sustainable unit economics with demonstrated scalability

Management Team

  • Healthcare industry experience with proven track record
  • Understanding of value-based care principles
  • Commitment to measurable patient outcome improvements
  • Ability to operate in regulated healthcare environment

Personal Mission

"The greatest investment opportunities in healthcare exist at the intersection of compelling financial returns and meaningful social impact. Our job is to identify companies where doing well and doing good are not just compatible, but mutually reinforcing."

— Bob Crants III, Founding Partner & CIO, Pharos Capital Group

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