BIO
Bruce has spent 25 years as a healthcare executive, entrepreneur, and venture and growth stage investor. He has helped build and invested in a number of high growth, successful healthcare software and services companies with revenues ranging from $10 million to $700 million. Bruce’s executive roles have all been focused on the growth of these businesses and included senior responsibility for Business Development, Corporate Development, Product Development, Strategy, Sales, and Marketing. He has served customers in many of the largest sectors within healthcare services.
Bruce’s executive roles have been with Compassus, the nation’s 3rd largest hospice and palliative care company; Healthways (NASDAQ: HWAY), the nation’s largest independent disease and population health management company and largest Medicare Advantage consumer services benefit provider; and The Advisory Board Company (NASDAQ: ABCO), one of the nation’s largest health system best-practice research and software businesses. At JPMorgan Partners, Bruce led investments in Accordant Health Services (acquired by AdvancePCS) and National Surgical Care (acquired by Amsurg) and played a key role in the buyout of the initial hospitals to form IASIS Healthcare (acquired by TPG Capital). At Healthways, he drove investments in D2Hawkeye (acquired by Verisk Analytics) and iTriage (acquired by Aetna).
The Interview
Q1: Looking back on the last 90 days, what are some of the bigger deals (M&A, funding rounds) that you think will have a big impact on the Medicaid market this year?
Given the uncertainty of state politics and budgets, in my opinion, successful companies providing
technology and/or services to managed Medicaid providers or state Medicaid programs will need to
demonstrate an ability to drive down the cost of healthcare and improve outcomes. In addition,
diversification across multiple states will provide a portfolio effect and mitigate individual state issues,
which are certain to arise. Finally, well-capitalized companies will be better able to weather inevitable
delays as we’ve seen in North Carolina and Kentucky.
Finally, a new private company, CareBridge announced its formation to provide long-term services and
supports (LTSS) to dual eligible individuals. The company is backed by investors including Frist Cressey
Ventures, Oak HC/FT and GV as well as some strategic investors. CareBridge is led by a very experienced
operator, Mike Tudeen, former CEO of PopHealthcare, which was acquired by GuideWell, the parent
company of Florida Blue. In my opinion, the company will meet an important need in the market of
provisioning these services in a more coordinated, regulatorily compliant and strategic manner.
Q2: Looking ahead for the next 90 days, how active do you think capital investment players will be in relation to investments with potential Medicaid revenues?
In general and not specifically about the next 90 days, investing in companies that provide services to
Medicaid entities requires deep domain expertise, ample capital and a long-term time horizon. As
mentioned, Medicaid is subject to the shifting winds of state politics and typically, tight state budgets,
and therefore, constant reimbursement pressure. Successful companies will be those that lower the cost
of care while improving outcomes. Having said that, states continue to shift the risk and responsibility
for managing the health of its Medicaid population to third party, managed Medicaid plans. This trend is
likely to continue providing tailwinds for the industry.
Q3: What advice would you give to your peers about vetting potential healthcare opportunities? do you think the most pressing issues will be?
Given the uncertainty of state politics and budgets, in my opinion, successful companies providing
technology and/or services to managed Medicaid providers or state Medicaid programs will need to
demonstrate an ability to drive down the cost of healthcare and improve outcomes. In addition,
diversification across multiple states will provide a portfolio effect and mitigate individual state issues,
which are certain to arise. Finally, well-capitalized companies will be better able to weather inevitable
delays as we’ve seen in North Carolina and Kentucky.