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Health Enterprise Partners - Aggregating Investment for Mutual Benefit
October Newsletter 2012
Health Enterprise Partners - October 2012 Newsletter

In this
issue...

  Portfolio Update: SCIO Health Analytics, Vitals, Privia, eVariant
  Essay: Planning Tomorrow's Medical Revolution…Today
  Hepfund.com's Facelift
  Q & A with Ezra Mehlman, Senior Associate at HEP
  News from the HEP Team

Portfolio Update

SCIO Health Analytics Wins Big at CMS, Hosts Value Based Benefit Design Conference

  • SCIO health analyticsEarlier this summer, SCIO Health Analytics was awarded a $4.9 million, three-year Health Care Innovation grant from the Centers for Medicare and Medicaid Services (CMS). This funding will support SCIO with its partners Finity Communications and Health Partners of Philadelphia in the use of health information technology and peer mentoring to empower Health Partners of Philadelphia plan members to improve their health. This comprehensive approach is expected to reduce the total cost-of-care through prevention, maintaining wellness, and management of chronic conditions with estimated savings of approximately $8.7 million. More information here.
  • SCIO hosted a Value Based Benefit Design (VBBD) forum on June 26-27 in Chicago. Drawing more than 30 attendees, the forum featured presentations demonstrating the need for VBBD solutions and the impact of implementing these solutions across the country.
  • Among the health plan attendees were representatives from the following plans: BlueCross BlueShield of South Carolina, Blue Cross and Blue Shield of Louisiana, Blue Cross and Blue Shield of North Carolina, Blue Cross Blue Shield of Kansas City, and BlueCross BlueShield of Tennessee.
  • Speakers included:
    • John Kahle of Intercare Solutions and Gus Georgiadis from Triad on the role of VBBD and population health management
    • Shawn Leavitt from Carlson on the role of the employer – innovations, needs and how the market is changing
    • Bobby Clark PhD and Jennifer McMurray Pharm D from Walgreens on increased adherence and cost savings of an employer's VBBD Program
    • Marcia Bondi from Highmark on the role of the consumer tying into the employer
    • Nancy Ross-Bell from Medical Mutual of Ohio on operational issues

Vitals Climbs the Inc. 500: #3 in Healthcare, #47 Overall

Vitals logoThe prestigious Inc. 500 list, released in August, ranked Vitals #47 overall, #3 in Top Health Companies on the 2012 Inc. 500 and #4 in Top Companies in the New York City Metro Area on the 2012 Inc. 500. Companies on the list are ranked according to percentage revenue growth between 2008 and 2011. Within these parameters, Vitals, has experienced a three-year growth rate of 4,636 percent, securing a position as the fastest-growing health website.

The Inc. magazine announcement comes amidst recent strategic additions to the Vitals management team. Vitals named Orlena Yeung as Chief Marketing Officer, a key driver in the growth of disruptive brands like Last.fm and Xbox. Doug Boake, SVP of Business Development at Open Table, and Bill Sullivan, a founding member of Oxford Health Plans, have both joined Vitals' Board of Directors.


Privia Installs Leadership for Next Phase of Growth

Privia Health LogoWhile more than doubling the size of its high performance network of top doctors and experiencing a substantial increase in membership of over the last year, Privia has also expanded its team internally, including the following key leadership hires:

  • Jim Craver, former MinuteClinic executive, was named Senior Vice President, Operations
  • Anthony Nguyen, M.D., a leading Wellpoint physician executive, joined the company as its Chief Medical Officer
  • Krishnan Sastry formerly of Carewise Health joined the company as Senior Vice President, Products
  • Chris Voigt has been tapped as Vice President, Business and Product Development
  • Peter van Riper named Senior Vice President of Finance and Operations, most recently a Vice President at Accretive Health
  • Corey Perdue has been hired in the role of Partner, Practice Growth, after serving for a decade as an executive with Inova Health System
  • Tara Goldenberg joins Privia Health as Vice President of Talent with 15+ years' experience in recruiting, most recently from Heidrick & Struggles, Inc. Executive Search Firm
The addition of these leadership hires will support Privia's rapid growth, and solidify the company's position as an innovator in the health care space.

eVariant wins Marcum Award 

eVariant logoeVariant has been designated the fastest-growing software company in Connecticut by the Connecticut Technology Council. The awards, sponsored by Marcum LLC, recognize the 40 fastest growing technology companies in Connecticut. CEO Bill Moschella accepted on behalf of the company at a special event on September 27th at the Oakdale Theater. 

Essay

Planning Tomorrow's Medical Revolution…Today by Don Black

Don Black PictureDon Black founded and served as the CEO of the Child Health Corporation of America, the nation's largest alliance of leading children's hospitals. He led the for-profit cooperative for 25 years. Don's diverse professional background includes entrepreneur, CEO, investment banker, and health service researcher. Today, Don efforts are focused mainly on his industry and provider consulting work executed through Don Black Healthcare StrategyHe is a member of the HEP Industry Advisory Board, and a senior advisor to Decision Strategies International. Paul Schoemaker is the firm's founder and Toomas Truumes is the partner in charge of the Life Sciences and Health practice. Find more information on DSI here


While the 20th century belonged to physics, the 21st will be about the impact of biosciences on human health. Building on a decade-long joint research project between the Mack Center for Technological Innovation at Wharton and Decision Strategies International (DSI), Dr. Paul J.H. Schoemaker's Chips, Clones, and Living Beyond 100: How Far Will the Biosciences Take Us? challenges us to imagine the future consequences of the convergence of life science breakthroughs and information technology advances. Read more.

 

HEP FundHepfund.com's Facelift

We recently redesigned our company website, Hepfund.com. Please take a look when you have a moment and let us know what you think.

Q & A with Ezra Mehlman, Senior Associate at HEP

Ezra has been working at HEP part-time since October 2010, while completing his MBA at Columbia Business School. He graduated in May and joined the team full-time in June. The newest member of the HEP team provides his insights on the market below.

What first got you interested in HEP?
Before business school I worked at the Advisory Board Company, and then in the health care provider practice of Booz Allen Hamilton. I came to realize that the part of my job that I valued most was in seeing my work manifest itself in expanded access, increased efficiency, or better patient care. While I greatly enjoyed this time, I was eager to affect more lasting change than was possible within the confines of a six month consulting engagement.

I started working at HEP in 2010, while completing my MBA at Columbia. I found a great fit: the strategy of partnering closely with payers and providers to identify transformative business ideas was one that allowed me to leverage my experience working with both groups. The approach of closely listening to the pain points affecting our strategic investors with the purpose of finding innovative solutions was convincing.

Most importantly, in an industry that is characterized by an "apprenticeship" model, I found a wonderful set of mentors in the four partners.

How will reform alter the delivery of health care services in 100 words?
Distancing myself from anything that could resemble a partisan point-of-view, I believe that reform has only amplified the major forces already affecting payers and providers. On the hospital side, an influx of 20+ million newly insured patients has heightened the focus on cost control. The specter of crippling readmission penalties and dramatically reduced payments has made care coordination and process redesign even greater priorities than they were before. For payers, an expanded pool of increasingly demanding patients means that competing on transparency and service are top priorities. And, of course, technologies that reduce the cost of care remain top-of-mind for both groups. While the Affordable Care Act has accelerated all of the above, I think that progressive hospitals and health plans are moving in advance of legislative mandates to find innovative solutions to these problems.

What are you most likely to be doing outside business hours?
I enjoy spending time with my fiancée, riding my bike to the outer boroughs, hitting Rockaway beach in Queens, watching documentaries, and reading.

Find Ezra on LinkedIn

News from the HEP team

  • July 26 – 28: Dan Cain addressed attendees of the Texas Healthcare Trustees Annual Conference at the JW Marriott San Antonio Resort on the changing nature of the health care delivery system (Merge, Sell, Lease, Go It Alone... Don't Freak Out). Read more.
  • September 21: Harvard School of Public Health (HSPH) hosted a symposium entitled "Health Care and the 2012 Elections" at Alston & Bird in Washington, DC. The forum explored the shifting political landscape surrounding health care reform, current trends in public opinion, and the universe of possible legislative outcomes. Attendees included Senator Tom Daschle, Tom Scully, and a variety of health care thought leaders.

    Rick Stowe, a member of the HSPH Health Policy and Management Executive Council attended this topical event with a number of our limited partners. Read more.
  • October 3-4: David Tamburri will serve as an ambassador at the Harvard Business School conference entitled “21st Century Health Care Management Education: Confronting Challenges for Innovation with a Modern Curriculum." David, in conjunction with the attendees of the conference sessions, will help prepare the foundations for a white paper on this topic. The conference is hosted by Regina Herzlinger, the Nancy R. McPherson Professor of Business Administration at the Harvard Business School.
  • November 2: David Tamburri will moderate the Venture Capital and Entrepreneurship panel at Columbia Business School's 9th Annual Healthcare Conference at the New York Marriott Marquis. John Marc Tessier-Lavigne, PhD President of Rockefeller University and Laura Forese, MD, Group Senior Vice President, COO, CMO of New York-Presbyterian/Weill Cornell will give the keynote speeches for this year's theme: Catalysts for Change in a Fractured Healthcare System.

    Dave continues the tradition of HEP's involvement with the conference, as Bob Schulz moderated the Venture Capital and Private Equity Panel last year.
    Information on the conference is available here.

Thank You

We appreciate your continued interest and welcome referrals of investment opportunities that fit our strategy of investing in companies that improve the quality and affordability of health care.

Best Regards,
The HEP Team


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