Health Evolution Partners launched a private equity fund that will invest up to $700 million in healthcare solutions built to advance quality, efficiency and consumer orientation. The firm is headed by David J. Brailer, MD, PhD, who is founder and chairman, and also served as the nation’s first National Coordinator of Health Information Technology. Initial funding for the investments will come from CalPERS (California Public Employees’ Retirement System).
As an investor and strategic advisor, Health Evolution Partners will support promising healthcare ventures that challenge traditional models of delivering clinical services, including the way they are organized, financed and oriented toward patients. Brailer told the New York Times that the organization will look to initially invest in telemedicine technologies, systems for tailoring drug doses, and e-Bay-type online marketplaces that would provide services for radiology imaging reads. The firm’s goal is to commercialize technologies that enable a shift to information-rich, defect-free and cost-effective health services.
Brailer said that the firm will avoid investing in saturated markets such as electronic health records, but rather look at ways to connect health IT to services.
“Health Evolution Partners will accelerate inevitable change that is underway in healthcare. We are focused on the companies and ideas that will redefine quality, efficiency and accountability of healthcare services,” said Brailer in a released statement.
CalPERS will commit $500 million to the Health Evolution Partners Fund for direct investments, healthcare-focused private equity investments and strategic joint ventures, as well as up to $200 million for investments in other healthcare initiatives.