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At HealthQuest, we take “Best Ideas” from our investment professionals and form pods to investigate and develop investment theses. Below we dive into some of the more serious cybersecurity challenges we see facing health systems and explore some innovative solutions and technologies that may be used to combat them. 

Health systems are continuously digitizing their operations, leading to rapid growth in sensitive data and increased risks of cyberattacks. This data has tremendous value to criminals, allowing them access to personal identity details, compromising patient security, disrupting medical care, and damaging finances and reputation. Given the devastating consequences, health systems are directing significant attention towards cybersecurity initiatives to protect against these increasingly sophisticated attacks.

Innovative solutions and technologies are essential in safeguarding sensitive patient data and IT systems. From artificial intelligence (AI) powered tools to medical Internet of Things (IOT) management to Identity Access Management (IAM) to blockchain-based systems, here are some of the innovative solutions and technologies we are excited about:

AI is a particularly attractive technology when it comes to powering healthcare cybersecurity solutions. Capabilities include the ability to:

 Solutions that identify, monitor and trigger alerts for connected medical devices. Healthcare organizations are rapidly adopting connected medical devices; however, unlike conventional IT assets (e.g., laptops, tablets, and mobile phones), many of these devices may not be managed by IT teams and traditional security solutions often can't see or secure them. While these devices improve patient care, many seem to lack robust security, often making them easier entry points into an organization’s network. The leading approaches typically monitor behavior with known profile baselines instead of static parameters.

 Through its distributed ledger technology, blockchain may be a more secure way for hospitals to store and manage patient health information. Unlike traditional database architectures, a decentralized system allows organizations to share data across multiple stakeholders while seeking to prevent malicious actors' unauthorized access or manipulation of records – providing secure storage of protected health information (PHI). Overall, blockchain technology is still nascent but has the potential to be an impactful enabling technology.

 IAM is typically designed to be an essential Zero Trust security strategy component. Zero Trust is a security model that assumes every request, user, and device is untrusted, and seeks authentication and authorization before granting access to resources. Unlike a traditional security framework, it is typically designed to not grant unfettered access upon entering a single password.

IAM’s goal is to ensure that only authorized users are granted access and this is often achieved by implementing a combination of technologies and policies that work seamlessly together with minimal disruption to user workflow. In addition to common security technologies like Multi-Factor Authentication (MFA) or Single Sign-On (SSO), a proper IAM solution also incorporates technologies such as Role-based Access Control (RBAC), which assigns permissions to users based on their role within the organization (rather than on an individual basis), and Attribute-based Access Control (ABAC) which grants access to resources based on a set of attributes, such as the user's job title or location.

If you are working on solutions that address the cybersecurity challenges health systems are facing or are interested in this space, please get in touch with our team at 

This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities to any person in any jurisdiction. This material may contain estimates and forward-looking statements, which may include forecasts and do not represent a guarantee of future performance. This information is not intended to be complete or exhaustive and no representations or warranties, either express or implied, are made regarding the accuracy or completeness of the information contained herein. The opinions expressed are as of June 2023 and are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks. Past performance is not a guarantee of future results. There is no guarantee any investment strategy will be successful. HealthQuest Capital Management, L.P. is an investment advisor registered with the Securities and Exchange Commission

    The Cost And Impact On Patient Safety And Care. 

    Cybersecurity Nightmares: The Cost Of Healthcare Cyberattacks In 2023. 

Healthcare IT

Keeping health systems secure: The increasing importance of cybersecurity

2023

 spoke with GrowthCap's RJ Lumba to discuss his decision to be an investor, what we're looking for in our partners, the recent macro environment, and much more. Listen to the podcast 

Services

Growth investor podcast: Deep dive with Garheng Kong

2022

At HealthQuest we develop theses through best ideas brought by our investment team members and voted on by the full team. The selected “best ideas” form research pods to go deeper on a particular trend or hypothesis. In early 2022, we focused a pod on the challenges facing the nursing workforce. Healthcare stakeholders have been aware of these challenges for decades; however, the stress levied on the healthcare system and on nurses during the Covid-19 pandemic brought these challenges to a national and global stage. It also fueled our interest in understanding the needs of one of our most critical healthcare resources: nurses. Our findings are detailed below. 

The nursing workforce has experienced a multitude of challenges ranging from recruitment, education, training and licensure to job culture, safety, retention, scope of practice, job satisfaction, growth, and career progression. While we expect many of the solutions to the nursing workforce challenge to arise from within provider entities (e.g., a change in hospital culture or creation of nurse leadership opportunities) or from policymakers (e.g., national licensure), we also anticipate that the private sector will generate solutions targeted at the nursing workforce.

Our research highlighted several themes – some of which have existed for years, and have been exacerbated in the wake of the Covid-19 pandemic:

Hospital and health system leadership are looking for solutions to address the needs of their nursing workforce across the following categories. 

These represent areas where technology solutions can have an impact on the nursing workforce, either on their own or in conjunction with policy, culture, leadership and educational initiatives. 

Streamline Nurses’ Workload & Focus Their Efforts on Advanced Care

Ensure nurses are adequately trained to care for their patients

If you’re working on solutions for these problems or interested in this space, reach out to our team at 

Research

Nursing Workforce Challenges

Portfolio company hiring was like riding a rollercoaster during the pandemic – from supporting commercial growth to assessing the workforce ahead of market headwinds – and the evolution we are seeing in leadership teams, particularly among Chief Financial Officers (CFOs), is worth its own spotlight. HealthQuest Venture Partner, 

, also Partner and Head of JSS Executive, shares his insights on how the CFO responsibilities have expanded and the importance of recruiting a dynamic leader into this role. 

What is the current state of the CFO role? 

Today’s CFO is busy in ways that previous generations of finance leaders could not have anticipated, with more responsibility for corporate strategy, board engagement, digital initiatives, financial performance, controls and management. The COVID-19 pandemic and subsequent recessionary environment changed the CFO’s responsibilities; they had to sharpen their focus when it came to managing inflation, supply chain disruptions, hybrid work, financing the business during an evolving macro environment, workforce fluctuations (The Great Resignation, Quiet Quitting and RIFs) and interest rate hikes. CFOs also have a meaningful role to play in their companies’ Environmental, Social, & Governance (ESG) programs, an increasingly important topic for investors and companies. A 

 reported dramatic changes in the gamut of functions that reported to the CFO, compared with data from two years prior. Amid all this disruption, it has become apparent that CFOs are expected to play a strong, central role, alongside executive peers, in stabilizing a business and positioning it to thrive in challenging conditions. 

How did macro events shape the needs within this role?

I mentioned some of the macro factors above that ultimately shifted focus, and added responsibilities, of the role of the CFO, but overall, the increase in capital markets activity seen in late 2020 and the record setting 2021 had many companies in 

 of the formal CFO role. The increase in traditional IPO volumes (+93% YoY for the U.S.

) along with the strong emergence of the SPAC (Special Purpose Acquisition Company) vehicle required many companies to hire a CFO with public-company readiness and experience. In 2021, there were 613 SPAC IPO’s, an increase of 147% from 248 in 2020 and over 900% compared to 59 in 2019

. The increase in volumes for IPOs, both traditional and through SPAC IPOs, increased the demand for CFOs who were ready and experienced to lead private companies through these transitions. These day-to-day tasks of executing one of these transactions rely heavily on the CFO to stretch in functionality from investor relations, to legal to accounting, and more. 

While public market exits have dried up in the last 18 months, we continue to see an abundance of hiring for the CFO role. However, these searches are no longer focused on CFOs who can transition a company from private to public or tackling the responsibilities of an IPO or SPAC process; instead, searches are focusing on CFOs with experience weathering prior downturns, turning companies around and bringing credibility during these challenging times. As a result, we have seen a decline in COO searches as more experienced CFOs take on both the financial and operational roles. This reduces cost to the company and streamlines turnarounds under one leader. 

What are companies looking for in Chief Financial Officer hires?

The role of the CFO has evolved to become more strategic over time; not to diminish the historical functions of the CFO, these are incredibly important, but the strength in bench under a CFO across Controller, FP&A, Investor Relations, etc. focuses on most of these duties, thus elevating the CFO to be more strategic. 

In a recent engagement for a private-equity backed business, some of the compulsory requirements included: significant prior M&A experience (buy side & sell side), past experience as a CFO of a private equity-backed company, proven track record to direct debt strategy and work with lenders and bankers, MBA in Accounting, large Audit firm experience (Deloitte, PwC, EY and KPMG) and of course, specific life science experience, and not to mention they had to be based in a specific city. Couple this with the considerations for a distributed workforce, repurposing hard assets, like office space, and budgeting for T&E in a hybrid world, it becomes increasingly evident what investors mean when they talk about the “war for talent”. Ultimately, the CFO search for an executive search professional such as myself, has become the most challenging search of them all. 

How do you evaluate CFOs to ensure they are prepared to lead through this environment?

When hiring a CFO, a rigorous and multi-faceted assessment process must be applied. Each investor group and company has their own priority experiences that a search agency must consider and be thoughtful of – it is imperative that a diligent approach is taken during the brief taking.  In the most part, my time is spent understanding the prospective CFO’s core competencies and leadership qualities, as well as their background in driving company growth (top-line & bottom line) as well as operational efficiency (supply chain, inventory management and distribution, etc.). The follow-on questions shift from quantitative to qualitative examples around how this was managed, how did the organization respond, what was the outcome and what challenges they encountered through this growth. When addressing core financial capabilities, the CFO will be asked to explain their experience managing significant budgets and P&Ls. How did they prioritize investments and what is their experience managing budget cuts, restructuring, or reallocating resources? We would also look to understand how the CFO implemented best practice across the finance organization: FP&A, GAAP reporting, IT systems and compliance.

For the ‘Strategic CFO’, understanding their M&A background (including strategic partnerships and joint ventures) and the transactions they have led takes up a large part of the discussion. Key questions around the number of buy-side/sell-side transactions completed, size of checks, capital structures, and whether they have directed and executed on documents are key for hiring decision makers to understand. 

It is important to note that I have highlighted just a few topics and core areas an executive search professional may look to address. A lengthy article could be written on this topic alone. Finally, a thorough executive assessment (i.e., Myers-Briggs, DiSC Assessment, Lumina) along with thorough soft and back-channel references will be taken.

Do you have any predictions for how 2023 may further evolve the CFO role?

At this time, 2023 will mostly come down to the state of corporate transactions. While we don’t expect the IPO markets to reopen, certainly not to the extent they were in 2021, there is increasing optimism around M&A. CFOs are usually on the chopping block post acquisition and therefore we could expect to see an increase in available CFO talent. This is something to watch for if you are in the market for a CFO. 

For companies not going through a corporate transaction, we expect the role of the CFO to be heavily focused on executing according to plan and focusing on profitability. CFOs who have led companies through prior market turbulence are highly coveted at this time, given the value they can bring to their executive counterparts, board members and employees broadly. 

The Strategic CFO

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WHITE PLAINS, N.Y., Dec. 23, 2024 — Royal Health Inc, a leading provider of advanced radiology software and workflow solutions, today announced the successful close of a minority investment, led by HealthQuest Capital, a leading growth capital firm focused on investing in transformative healthcare companies. Although the funding amount remains undisclosed, this recapitalization resulted in a near eightfold increase in enterprise valuation since the entry of Royal Health’s 2019 investors.

This strategic investment will enable Royal Health to scale its operations. It will also enhance the company’s technology offerings. Additionally, it will support expansion in both U.S. and international markets.

Royal Health is renowned for pioneering solutions that optimize radiology workflows and elevate patient care. The company is well-positioned to lead innovation in an industry experiencing rapid transformation.

Peter Nassif, CEO and Founder of Royal Health Inc, commented:



“This partnership with HealthQuest Capital represents a significant milestone for Royal. Their expertise and shared commitment to advancing healthcare align perfectly with our mission to revolutionize radiology with smarter, more efficient solutions. This investment will allow us to accelerate delivering exceptional value to imaging centers, healthcare providers and patients”

HealthQuest Capital’s investment reflects its confidence in Royal Health’s ability to address critical challenges in radiology, including operational efficiency, staffing shortages, and improving the patient’s experience.

Sharath Reddy, Partner at HealthQuest Capital, stated:



“Royal Health Inc is at the forefront of transforming radiology with cutting-edge technology that enhances workflows and delivers better outcomes for both patients and providers. We’re proud to support their continued growth and innovation as they redefine the future of radiology.”

The investment will drive advancements in Royal Health’s product portfolio. It will also accelerate research and development efforts. Additionally, it will enhance the company’s ability to support healthcare providers navigating complex radiology landscapes.

“This marks an exciting new chapter for Royal Health. With HealthQuest Capital’s partnership, we are poised to accelerate innovation, expand our reach, and continue delivering cutting-edge solutions that transform radiology. Together, we’ll empower providers to operate more efficiently and improve the patient experience, shaping the future of healthcare.”

Royal Health Inc delivers innovative, cloud-based workflow solutions tailored for healthcare providers, particularly in radiology. With a full suite of integrated tools spanning the entire radiology workflow—from pre-visit processes through to revenue cycle and analytics—Royal Health enables organizations to streamline operations and elevate quality of care. Royal Health is known for its customer-focused approach and scalable solutions. The company is dedicated to driving efficiency and reliability for healthcare providers of all sizes including both independent facilities and complex, multi-site systems.

HealthQuest Capital is a private asset firm that provides capital to transformative healthcare companies. HealthQuest Capital focuses on commercial prospects that drive enhanced patient outcomes and elevate the efficiency of healthcare delivery. With approximately $2 billion in capital under management, the firm focuses on fostering innovation across the healthcare spectrum, including medical technologies, diagnostics, digital health, and innovative services. The HealthQuest Capital team combines decades of investing experience with domain expertise in the various aspects of the healthcare industry.

HealthQuest Capital Invests in Royal Health Inc to Accelerate Innovation in Radiology Operational Solutions

2024

MCLEAN, Va., Oct. 24, 2024 /PRNewswire/ -- Somatus, the nation's largest and leading provider of value-based kidney and cardiovascular care, today announced it serves more than 275,000 patients in all 50 states and across all lines of business. The company's growth is attributed to new and expanded partnerships that bring its proven AI/ML powered home-based care model to a broader range of patients living with chronic kidney disease, cardiovascular disease, and their related comorbid conditions. 

"This growth is a further testament to confidence in our whole-person care approach," said Dr. Ikenna Okezie, Co-Founder and Chief Executive Officer of Somatus. "We are honored that health plans, provider organizations, and employers want to be part of a solution that delays disease progression and drives greater access, equity, and improved outcomes." 

In addition to its expanded footprint, Somatus has experienced the following significant recent wins: 


Somatus partners with nephrology, cardiology, and primary care groups, leading health plans, and health systems to provide integrated primary and specialty care for patients with, or at risk of developing, kidney and heart disease. As the market leader in value-based kidney care, Somatus' fully integrated clinical services and AI-driven technologies delay or prevent disease progression, improve quality and care coordination, and increase the use of home dialysis modalities and rates of kidney transplantation. In 2024, Somatus expanded its program to contract for individuals with congestive heart failure. The company is headquartered in McLean, Virginia and founded by a team of world-class healthcare operators, successful entrepreneurs, and leading clinicians. For more information, please visit 

Somatus now serves over 275K patients across all 50 states

 – Cellipont Bioservices, a leading cell therapy Contract Development and Manufacturing Organization (CDMO), today announced Darren Head as Chief Executive Officer. In addition to his role as Chairman of the Board, Mr. Head brings deep institutional knowledge and a wealth of biopharmaceutical leadership experience to the role. This strategic transition marks a significant step forward as the company continues to expand its operations and deliver groundbreaking cell therapies to the market.

With over 26 years of experience in biological, device, and drug manufacturing, as well as significant leadership in the CDMO sector, Mr. Head is well-equipped to guide Cellipont through its next phase of growth, building on the company’s strong foundation of quality and client service.

Mr. Head’s previous leadership roles with Great Point Partners (“GPP”) investments include CEO positions at Bionova Scientific, MaSTherCell, and Cytovance Biologics in addition to multiple board member and CEO Advisory Board Member roles with GPP portfolio companies. Prior to Cytovance, he served as Senior VP of Worldwide Operations at Immucor. Earlier in his career, he led manufacturing and clinical supply operations in late Phase 3 programs at Aronex Pharmaceuticals.

“We are excited to have Darren as CEO in addition to his role of Chairman of the Board,” said Noah Rhodes, a Cellipont Board Member and Head of Private Equity at GPP. “His deep familiarity with Cellipont’s business, combined with his track record of success in the CGT CDMO space, makes him uniquely qualified to lead the company during this exciting period of growth. We are confident in his ability to continue guiding Cellipont along its growth trajectory.”

Mr. Head’s CEO appointment reinforces Cellipont’s commitment to advancing cell therapy services and serving as a trusted partner to biopharma companies worldwide. The company will continue to expand its capabilities and deliver high-quality, customized solutions to clients. 

“I am honored to begin this new role as CEO and build upon the exciting work we’ve already accomplished together,” said Darren Head. “Cellipont is at the forefront of an innovative and transformative industry, and I’m excited to lead our exceptional team as we continue to expand our capabilities, enhance client partnerships, and ultimately help bring life-changing therapies to patients in need.”

In addition to Mr. Head’s CEO role, Cellipont today announces a minority growth equity investment from HealthQuest Capital, a leading growth investor partnering with transformative healthcare companies. GPP, Cellipont’s majority investor, also participated in the growth equity investment. 

“We are excited to partner with the Cellipont and GPP teams to continue building a world-class cell-therapy CDMO,” said Conrad Wang, MD, a Partner at HealthQuest Capital and new Cellipont Board Member. “We’ve closely monitored the growth across the cell-therapy ecosystem and we look forward to assisting the Cellipont team in executing upon its growth strategy and playing an active role in improving patient lives through the life-changing therapies Cellipont supports.”

Cellipont Bioservices is a premier Contract Development and Manufacturing Organization (CDMO) specializing in the advancement of cell therapies. With a team of industry-leading experts, Cellipont is at the forefront of cell therapy development and manufacturing, offering comprehensive solutions from process development, analytical services, to large-scale commercial manufacturing. Our purpose-built facility, combined with our cutting-edge technology and commitment to quality enable us to support our clients in delivering life-changing cell therapies to patients worldwide. Cellipont Bioservices is dedicated to excellence in all aspects of our operations, ensuring that we not only meet but exceed the expectations of our clients and the communities we serve. To learn more, visit 

Cellipont Bioservices announces Darren Head as Chief Executive Officer & minority growth equity investment from HealthQuest Capital 

, the manufacturer of the Edison® Histotripsy System and novel histotripsy therapy platforms, announced today the completion of an oversubscribed $102 million Series D financing. The round was led by Alpha Wave Ventures, a world leader in growth stage investments, with participation from new investors Amzak Health and HealthQuest Capital, and existing investors Johnson & Johnson Innovation - JJDC, Inc. (JJDC), Venture Investors, Lumira Ventures, Yonjin Venture, the State of Wisconsin Investment Board, and others.

Histotripsy is a novel form of focused ultrasound that uses high amplitude, very short pulses to create a “bubble cloud” that is designed to mechanically destroy and liquefy targeted liver tumors. These bubble clouds form and collapse in microseconds, creating mechanical forces strong enough to destroy tissue at cellular and sub-cellular levels in a non-invasive and non-thermal method. Histotripsy offers a promising alternative to treatments such as surgery, radiation and chemotherapy, which often have significant side effects.

The Series D funding will be used to accelerate category defining advancements to its non-invasive histotripsy platforms, support commercial growth in the US and in planned global markets, and initiate the company’s innovative, prospective 

 that will evaluate HistoSonics’ Edison System for the treatment of liver tumors across multidisciplinary users. The Edison Histotripsy System was granted FDA De Novo clearance in October 2023. HistoSonics is currently partnering with leading institutions across the US and internationally in developing multi-disciplinary histotripsy liver programs.

“Histotripsy is a paradigm-changing treatment option for patients who want a non-invasive approach to target and destroy tumors without the need for needles or incisions,” said Mike Blue, President & CEO, HistoSonics. “We’re thrilled to announce this top-tier investor syndicate led by Alpha Wave, which reinforces the confidence in our mission to impact patients’ lives with our current liver application and expanded use in kidney, pancreas, prostate, brain and other tumor types. This funding will accelerate key projects designed to enhance core technical capabilities impacting current and future platforms, and support collaboration with physicians and researchers studying innovative ways to use histotripsy’s unique mechanism of action to improve patient outcomes. By pioneering a new category of medicine with histotripsy, HistoSonics is redefining liver tumor treatment and providing hope for millions of people worldwide who desperately need new options.”

“Alpha Wave is proud to lead the investment in HistoSonics, a pioneer in the use of histotripsy,” said Chris Dimitropoulos, Managing Director, Healthcare Investments at Alpha Wave Global. “Histotripsy’s unique non-invasive approach uses focused ultrasound to precisely target and destroy diseased tissue without damaging surrounding healthy tissue. This groundbreaking technology has the potential to transform the treatment landscape for a variety of challenging clinical conditions, offering patients improved outcomes and recovery times. The level of adoption we’ve seen from leading hospital centers across the country and overseas highlights the huge unmet medical need. We are excited to support HistoSonics in accelerating the development and availability of this innovative therapy.” In connection with this financing, Mr. Dimitropoulos will join the HistoSonics Board of Directors.

HistoSonics' Edison System uses proprietary technology and advanced imaging to deliver personalized, non-invasive histotripsy treatments with precision and control. The novel mechanism of action of this proprietary technology may provide significant patient advantages, including the ability of the treatment site to recover and resorb quickly. HistoSonics’ platform also provides physicians the ability to monitor the destruction of tissue under continuous real-time visualization and control, unlike any modality that exists today. [First-in-man histotripsy of hepatic tumors: the THERESA trial, a feasibility study]

HistoSonics is a privately held medical device company developing non-invasive platforms and proprietary sonic beam therapy utilizing the science of histotripsy, a novel mechanism of action that uses focused ultrasound to mechanically destroy and liquify unwanted tissue and tumors. The company is currently focused on commercializing their Edison System in the US and select global markets for liver treatment while expanding histotripsy applications into other organs like kidney, pancreas, prostate, brain, and others. HistoSonics has offices in Ann Arbor, Michigan, and Minneapolis, Minnesota. The Edison® System is intended for the non-invasive mechanical destruction of liver tumors, including the partial or complete destruction of unresectable liver tumors via histotripsy. The FDA has not evaluated the Edison System for the treatment of any specific disease or condition.

Use of the Edison System in kidney applications is limited by federal law to investigational use. The #HOPE4KIDNEY Trial is designed to support a future expansion of the indication to include the destruction of kidney tissue/tumors.

HistoSonics secures $102M series D financing

NEWPORT BEACH, Calif., Aug. 7, 2024 /PRNewswire/ -- Epilog Partners, a private equity platform built by investors, operators and innovators for healthcare's complexity, announced today the acquisition of Care Connectors Medical Group ("Care Connectors") on May 8, 2024. The majority recapitalization included significant rollover from the company's founders and co-investment from HealthQuest Capital, Echo Health Ventures and Blue Venture Fund.

Headquartered in Newport Beach, California, Care Connectors provides a national, on-demand platform for value-based care enablement. The company partners with health plans and risk-bearing providers to manage prospective risk adjustment, quality improvement, and care coordination. Care Connectors offers in-home (in-person and virtually) and community based (primary care and mobile clinics) solutions.


"Prior to starting Care Connectors, we were in our customers' seats and every day we leverage those experiences and our flexible, AI-enabled software platform to deliver customized solutions that meet our customers' unique needs," said Nilay Shah, Co-founder and Chief Executive Officer of Care Connectors. "We are excited to partner with Epilog given its track record of success with high growth companies in the value-based care space. Additionally, as a founder-owned business, we sought a partner that understood the company building journey and aligned with our commitment to operational excellence that drives differentiated results for our customers and their members and patients."


"As health plans and risk bearing providers continue to face change in their regulatory, reimbursement and care delivery environments, Care Connectors' unique ability to engage the hardest-to-reach and non-compliant patients, while serving as an extension of their primary care physician and health plan is becoming increasingly important in order to deliver the best outcomes," said Chris Price, Founder and Managing Partner at Epilog Partners. "We are thrilled to partner with such an amazing team at Care Connectors and honored to have been supported by a great group of co-investors that bring significant value to the next phase of growth for the company."

"Care Connectors is Epilog's third platform investment and the most recent example of the firm's commitment to investing in tech-enabled payer and provider services and software and tech-enabled pharma services companies that are improving clinical, financial, and experiential outcomes," said Kyle Gay, Principal at Epilog Partners. "We are currently invested in CareMetx, a leading biopharma hub services company, and successfully exited ReCept, a leading specialty pharmacy managed services company, to Omnicell."

Terms of the majority recapitalization were not disclosed. Gibson, Dunn & Crutcher and Holland & Knight represented Epilog in the transaction and BMO Sponsor Finance led the financing for the transaction. Bailey & Company and Sheppard Mullin advised Care Connectors.

Care Connectors Medical Group is a leading value-based care enablement platform focused on supporting health plans and risk bearing providers in their effort to manage prospective risk adjustment, quality improvement and care coordination. The company provides national, on-demand delivery of these solutions for members and patients in their homes (in-person and virtually) or community (primary care and mobile clinics). It was founded in 2018 by Nilay Shah, Dr. Vinod Kannarkat and Andrew Lam. For more information, visit 

HealthQuest Capital invests in Care Connectors Medical Group

 HealthQuest Capital is pleased to share that Founding Managing Partner, Garheng Kong, has been selected to GrowthCap’s list of Top 25 Healthcare Investors of 2024. 

“I am proud to partner with and invest in innovative healthcare companies that are focused on driving positive patient impact and improving health economics. At HealthQuest Capital, we’re committed to making a significant, positive difference in people’s lives through the advancements in healthcare, and feel we can be the best partners to our companies by sharing perspectives from our team of former healthcare providers and operators,” said Garheng Kong, Founding Managing Partner.

website to view the full list of firms and learn more about the selection criteria. 

HealthQuest Capital is a private asset firm that provides capital to transformative healthcare companies. HealthQuest focuses on commercial prospects that drive enhanced patient outcomes and elevate the efficiency of healthcare delivery. With approximately $2 billion in capital under management, the firm focuses on fostering innovation across the healthcare spectrum, including medical technologies, diagnostics and tools, digital health, and innovative services. The HealthQuest team combines decades of investing experience with domain expertise in the various aspects of the healthcare industry.

This award is the opinion of the party conferring the award and not of HealthQuest. The Top 25 HealthCare Investors of 2024, issued by GrowthCap on 5/1/24, was based on the time period of 1/23 – 4/24. HealthQuest submitted a nomination, and once selected, paid a publishing and copyright fee to promote this award. There can be no assurance that other providers or surveys would reach the same conclusion as the foregoing.

Garheng Kong named top 25 healthcare investors of 2024 by GrowthCap

Ashley brings over 20 years of industry experience to continue to grow HealthQuest Capital's ecosystem 

SAN FRANCISCO, April 9, 2024 /PRNewswire/ -- 

, a private asset firm that provides capital to transformative healthcare companies, today announced the addition of 

 to its Industry Advisory Board (IAB). McEvoy brings over 20 years of experience from Johnson & Johnson. This appointment will enhance HealthQuest Capital as a value-add investor for its ecosystem of portfolio companies by adding another complementary industry leader to drive progress within the healthcare space.

Ashley McEvoy is the former Executive Vice President and Worldwide Chairman of Johnson & Johnson's MedTech division, Ashley oversaw a vast organization with 60,000 global employees and revenue exceeding $30 billion. Her recent appointment to the board of Procter & Gamble as well as her tenure as a board member of Children's Hospital of Philadelphia (CHOP) underscore her commitment to driving innovation and excellence in healthcare. With her record of growth and innovation and a deep passion for improving patient lives, Ashley will provide invaluable insights to HealthQuest Capital's investment strategies.

"Our Industry Advisory Board is highly curated and specifically includes senior executives in healthcare that are very complementary to each other so they can bring different perspectives to our investment approach," said Garheng Kong, Managing Partner at HealthQuest Capital. "The addition of Ashley McEvoy strengthens our ability to identify and support innovative healthcare companies. She will be a true extension of HealthQuest and enrich our role in the healthcare ecosystem. We're excited about the value her expertise and deep industry knowledge will bring to our portfolio companies."

As a member of the IAB, McEvoy will play an integral role in due diligence processes, leveraging her network and expertise to evaluate investment opportunities. She will also be involved in post-investment strategies to help build value for portfolio companies, offering strategic guidance and facilitating key introductions.

"HealthQuest's focus on healthcare innovation aligns perfectly with my passion for driving positive change in the industry," McEvoy said. "The firm is seeing a broad range of healthcare companies that are at a crucial inflection point in their lifecycle and it's exciting to continue to be a part of the ecosystem that funds those opportunities. I am thrilled to be part of a team that fosters growth and transformation in healthcare."

For more information about HealthQuest Capital, please visit 

HealthQuest Capital is a private asset firm that provides capital to transformative healthcare companies. HealthQuest focuses on commercial prospects that drive enhanced patient outcomes and elevate the efficiency of healthcare delivery. With approximately $2 billion in capital under management, the firm focuses on fostering innovation across the healthcare spectrum, including medical technologies, diagnostics and tools, digital health, and innovative services. The HealthQuest team combines decades of investing experience with domain expertise in the various aspects of the healthcare industry. For more information, please visit 

HealthQuest Capital welcomes Ashley McEvoy to its advisory board

Chicago, IL and Waltham, MA (March 12, 2024) – 

Linden Capital Partners ("Linden"), a Chicago-based private equity firm focused exclusively on the healthcare industry, announced today the completion of its acquisition of Alcresta Therapeutics, Inc. ("Alcresta"), a leader in commercializing novel enzyme-based products designed to address challenges faced by patients living with gastrointestinal disorders and rare diseases, from Athyrium Capital, Bessemer Venture Partners, Frazier Healthcare Partners, and HealthQuest Capital. HealthQuest Capital subsequently re-invested in Alcresta and will continue as a minority shareholder and board member.

Linden Capital Partners acquires Alcresta Therapeutics inc. 

 HealthQuest Capital is pleased to share that it has been selected to GrowthCap’s list of Top Growth Equity Firms of 2023. The process began with a consideration set of over 400 firms and final round candidates were evaluated across unique capabilities, sector expertise, investment judgment, demonstrated value creation, senior partner composition, talent retention, firm evolution, and firm momentum, among other attributes. 

"Being recognized by GrowthCap as one of the Top Growth Equity Firms for 2023 is a testament to our commitment to fostering innovation and driving positive change in the industry," said Garheng Kong, Founding Managing Partner, HealthQuest Capital. "This inclusion underscores our dedication to supporting visionary entrepreneurs and breakthrough technologies that have the potential to redefine the future of healthcare. We are passionate about investing in healthcare and are honored to be one of a few healthcare dedicated firms recognized." 

 website to view the full list of firms and learn more about the selection criteria. 

This award is the opinion of the party conferring the award and not of HealthQuest. The Top Growth Equity Firms of 2023, issued by GrowthCap on 2/28/2024, was based on the time period of 1/23 – 12/23. HealthQuest submitted a nomination, and once selected, paid a publishing and copyright fee to promote this award. There can be no assurance that other providers or surveys would reach the same conclusion as the foregoing.

HealthQuest Capital selected to GrowthCap's top growth equity firms of 2023

Inbound Health Releases All-In-One Technology Platform for Advanced Care in the Home

Inbound InHome™ is a new patient management and analytics platform designed for the unique needs of acute and post-acute in-home care providers and patients.

 Inbound Health, a nationwide provider of advanced care-at-home solutions for health systems and health plans, announces the release of Inbound InHome™, a proprietary patient management and analytics platform designed specifically for in-home advanced care. Inbound InHome was designed by Inbound Health clinicians and healthcare operators to deliver a technology-enabled, facility-level care experience in the comfort of the patient’s home. “When Inbound Health first started seeing patients in the home in May of 2020, we were leveraging a traditional biometric monitoring platform as our technology backbone,” said Dave Kerwar, CEO of Inbound Health. “While that allowed health system partners to remotely track patient vital signs, it lacked some major components required to conduct seamless, efficient, and highly coordinated care at scale.”

Inbound InHome eliminates manual workflows for identifying, coordinating, and monitoring patients with integration points into multiple EMRs. Safely caring for acute patients in the home requires rigorous screening, detailed preparations, and adherence to condition-specific care plans. Inbound InHome simplifies a complex process, saving clinician time without compromising patient care. “With Inbound InHome, I always know where patients are in their care episode, who their care team members are, and how they are progressing with their care in the home,” said Dr. Rachel Rivard, Senior Medical Director at Inbound Health. “The visibility and efficiency gains from Inbound InHome allow my team to support more patients while optimizing patient safety and quality of care.”

The platform enables health system partners to scale programs for advanced care in the home. Inbound InHome features machine learning models to help health systems identify in real-time appropriate patients for home hospital care and proactively identify risks throughout their care episode. Inbound InHome includes a workflow application to automate logistics across the care episode and device-agnostic patient monitoring capabilities that combine devices, wearables, and in-home sensors. 

For patients receiving care at home, Inbound InHome can be accessed on an iPad or other tablet computer. The platform brings audio, video, and texting functionality for on-demand remote communication with providers. Patients also have easy access to their scheduled appointments and personalized care plans. “It was easy to use. They explained well how to use it, too. Everything was very user friendly”, said patient Debra Carnell. 

Virtual and field-based clinicians have been using Inbound InHome to support advanced care delivery in the home for patients since August 2023. “Delivering effective advanced care in the home requires a platform that prioritizes flexibility, safety, and simplicity for patients and their care team,” said Emily Downing, M.D., a system clinical officer for population health and continuing care at Allina Health and Chair of Inbound Health’s Clinical Advisory Board. “Traditional tools in the market do not fully support clinicians or operations workflows needed to deliver this type of advanced care in the home. Inbound InHome is an accelerator for health systems to deliver established and innovative new care models in the home.”

 Inbound Health will be launching Inbound InHome with two additional leading health systems in the next three months, as well as releasing new features for Inbound InHome later this year, including:

 provides a full stack of capabilities that enable health systems and health plans to offer hospital and skilled nursing facility-level care in the home. With a commitment to quality and compassionate care, Inbound Health has treated over 7,000 patients across 350+ DRGs and counting and will further customize the care model to the needs and strategies of its partners. Learn more at

Inbound Health releases all-in-one technology platform for advanced care in the home

Springbuk Activate Matches Employers’ Population Health Needs with Potential Program Partners

Springbuk excels at identifying opportunities for population health management and cost containment. Now we’re delivering a data-driven program to match the employer's needs with a partner program.”— Joy Powell, Springbuk CEOINDIANAPOLIS, INDIANA, UNITED STATES, January 16, 2024 /

, the leading health intelligence and analytics platform, today announced the general availability of an innovative new partner marketplace within the Springbuk Health Intelligence™ platform. The 

 matches employers with possible partners based on their population's health needs or risks, showing them potential opportunities in savings and program engagement – all in one place.
Eleven partners were announced in this inaugural rollout with more expected to join in phases throughout the first quarter and the remainder of 2024. The initial set of partners is:

“The Springbuk Activate marketplace represents a seismic shift in how employers and their benefits advisors can now plan and execute their benefits programs,” said Joy Powell, Springbuk CEO. “Springbuk has always excelled at identifying opportunities for population health management, risk management, and cost containment. Now we’re taking the next step – delivering a data-driven program, using the employers' underlying data, to uniquely match the employer population needs with a partner program. We are proud to join forces with these organizations, each of which brings unique strengths to our platform. Together, we are pioneering a new era in health management, where data-driven insights meet individualized care.”

Springbuk worked with each partner featured in the Activate marketplace to fully customize a “card” within the Springbuk application that displays the partner’s logo, program description, value proposition, and strategy for realizing opportunities. The identified members and corresponding savings opportunity displayed in the Springbuk application are generated by each partner’s proprietary methods or calculations. Springbuk then applies the methodology on the underlying employer data.

For an employer or benefits advisor, Springbuk Activate provides an estimate of:

For more information about Springbuk Activate, visit www.

About Springbuk
Springbuk is a leading-edge health analytics intelligence platform that empowers employers and consultants to sharpen their benefits strategy, advance employee health, and contain
costs. The innovative solution offers deep analytic insights, allows data-informed decision-making, and provides curated action steps and strategic direction to maximize return on employee benefit investments. Learn more at springbuk.com.

Springbuck launches innovative data-driven partner marketplace for employers and benefits advisors 

Ajax, KKR and Hologic have launched a startup that advances lung-cancer devices and diagnostics

Startup Ajax Health’s model for spurring corporate innovation is gaining traction with investors and large medical-technology companies.

Menlo Park, Calif.-based Ajax creates turnkey innovation platforms for commercial-stage medtech players, and it has teamed with investment firm 

 to launch Maverix Medical, a startup formed to advance diagnostics and medical devices to treat lung cancer.

Maverix is independent but intends to work with Hologic to bring lung-cancer products to market, said Ali Satvat, a KKR partner and co-head of the firm’s Americas healthcare unit and global head of health care strategic growth.

Large companies often struggle to innovate while startups are better at inventing products than bringing them to market. Ajax aims to pair the agility of startups with the commercial infrastructure of larger businesses.

Maverix is the second such platform Ajax has launched and it intends to develop more, said founder and Chief Executive Duke Rohlen.

Ajax has had success with its first platform, Cordis-X, an accelerator for inventing new products for medical-device company Cordis. But as the Cordis experience shows, the model isn’t easy to execute. 

Rohlen, who founded Ajax in 2017, seeks to fill a gap he sees in the medtech industry. Startups develop transformative medical devices that can command top dollar from companies seeking acquisitions. Large companies can acquire transformational products by purchasing startups, but they also need incremental improvements to existing products and new products to pair with existing medical devices. 

Venture-backed startups don’t target those types of innovations, said Rohlen, who previously led four medtech companies to mergers with larger players. 

Large medtech companies, meanwhile, face pressure to maximize earnings per share, hurting their ability to fund enough research and development to sustain innovation, Rohlen said. 

Ajax’s solution is to create units that invent new products. Ajax first applied the model to Cordis, which it, KKR and private-equity firm Hellman & Friedman acquired in 2021 from medical-products distributor 

They formed Cordis-X to supply Cordis with new products. Cordis-X is creating 14 products for Cordis, which is growing faster than it was before it was acquired, according to Rohlen, a member of the company’s board. 

The new owners of Cordis also replaced most of its senior management and implemented new accountability measures, such as placing individuals in charge of specific growth initiatives, to increase productivity, Rohlen said. 

 to reach $900 million in annual revenue within 36 months, and it is on track to meet that goal, Rohlen added. 

Health systems that buy medical devices are finding that costs are rising but reimbursement isn’t, said Dr. Garheng Kong, founder and managing partner of Ajax investor HealthQuest Capital. Ajax’s model of partnering with commercial-stage companies, which are attuned to what health systems are willing to buy, is particularly appealing considering the current environment, Kong added.

“The pressure is even more significant today because of the headwinds that almost every health system in the country is facing,” Kong said.

Hologic, which sells diagnostics and instruments used in women’s health, is already growing quickly. Over the last five years, its stock price has risen about 60%. It has made a series of acquisitions and has resources to fund more deals and product development, said Andrew Cooper, an analyst with investment bank and financial services firm Raymond James.

But Hologic also faces competition from large companies such as  

, said Erik Anderson, Hologic’s division president, breast and skeletal health solutions. When considering avenues for growth, Hologic identified lung cancer, the top cause of cancer death in the U.S., he said.  

Hologic and KKR have invested an undisclosed amount in Maverix, which Rohlen leads. The deal enables Hologic to concentrate on its core businesses while expanding methodically into lung cancer, rather than diving in through an acquisition, Anderson said. 

“There’s definitely a significant unmet need in the lung cancer space,” he added.

Startup Ajax Health extends med-tech innovation model to Hologic 

Funding to Support Expanded Access to Whole-Child, Value-Based, Outcomes-Driven Autism Care

SAN DIEGO, Oct. 3, 2023 /PRNewswire/ -- Cortica, the United States' leading physician-led, whole-child, value-based autism services company, has raised $40 million in a Series D extension, bringing the total Series D round to $115 million. The extension was entirely strategic, led by CVS Health Ventures, in conjunction with LRVHealth, Ascension Investment Management (a subsidiary of Ascension), and the University of Wisconsin Foundation.

"There is an increasing need for access to evidence-based care for children with neurodivergent conditions and autism, and we believe that Cortica is well positioned to help support our members and their dependents by deploying an integrated, medical and behavioral care model," said Justin Brock, partner at CVS Health Ventures. "Through our investment and collaboration with Cortica, we believe that we can help improve the overall quality of care for individuals with autism, as well as provide support to their caregivers."

Founded to fix the fragmented care journey families typically experience when seeking diagnoses and treatments, Cortica's whole-child, whole-family, value-based care model for autism spans medical treatment, neurodiversity-affirming behavioral therapy, developmental therapy (encompassing speech, occupational, physical, and music therapies), and family support and counseling.

Cortica's care model has shown improved outcomes across conditions that frequently co-occur with autism, including sleep disorders, seizures, psychiatric comorbidities, and gastrointestinal, communication, behavioral, and sensorimotor issues, among others – while utilizing less than 50% of standard applied behavioral analysis volumes, limiting the use of antipsychotic and stimulant medications, and reducing emergency department and inpatient admissions.

Cortica delivers on multiple metrics related to the healthcare effectiveness data and information set (HEDIS), one of the healthcare industry's most widely used performance tools. Cortica's value proposition has led to four whole-child value-based care contracts, with several more in the pipeline.

"After working closely with our strategic network and developing a deep thesis on autism, one of the most complex challenges in healthcare, we're thrilled to have discovered and invested in Cortica," said Ellen Herlacher, principal at LRVHealth. "Cortica's validated care model and technology platform improve clinical outcomes, enhance the healthcare experience, and reduce waste in the system."

Cortica closes $40 million series D extension led by CVS Health Ventures, LRVHealth, and other strategic investors, bringing round total to $115 million

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