One of the most active private equity companies in the elderly care sector is founding a new portfolio company dedicated to value-based care.
Welsh, Carson, Anderson & Stowe (WCAS) announced the formation of Valtruis on Tuesday along with an initial capital commitment of $ 300 million.
Led by a founding executive team that includes managing partners Anna Haghgooie, Tracy Bahl and Karey Witty, the new investment group will help identify, support and grow companies that are “realigning and transforming the US healthcare industry” strive for.
“We’re seeing a lot more innovation in healthcare,” Witty, a value care veteran who most recently served as COO of Envision Healthcare, told Home Health Care News. “In fact, more innovations are happening now than we’ve ever seen. Entrepreneurs from all sectors are focused on bringing technology, data and consumer behavior into focus with the ultimate hope of finding a better way. “
Envision Healthcare is a provider of medical and advanced practice services to US healthcare facilities.
Before joining Envision, Witty was CEO of Corizon Health and CFO of naviHealth, a value-driven care company focused on the post-acute sector and a former WCAS portfolio company. He also held the CFO positions at HealthSpring and Centene Corp. (NYSE: CNC).
“When we launched naviHealth, it was clear that acute care institutions needed help directing patient care to the nearest care location,” said Witty. “This is critical, both in terms of improved outcomes for patients and the health system in general.”
Founded in 1979, WCAS is a US private equity firm focused on two target industries: technology and healthcare. Past and current home care-related investments include InnovAge (Nasdaq: INNV) and Kindred at Home, the latter of which will soon be wholly owned by Humana Inc. (NYSE: HUM).
WCAS has raised and managed a total of over $ 27 billion in committed capital, making it the perfect parent organization for Valtruis to accelerate the shift towards value-based care, Witty said. WCAS has invested in a total of at least 90 healthcare companies.
“CMS is a big supporter of value-based maintenance and has started several pilot projects aimed at this area. But not all pilots actually cut the cost of the system, ”he said. “Our goal is to invest in and support innovative, disruptive companies that challenge the status quo by changing costs, quality, access and the patient experience for the benefit of all participants.”
Valtruis has already identified “selected sectors” within the healthcare sector that it will focus on. Witty said he couldn’t enumerate these specific areas, but did mention that the Valtruis leadership team is keen to explore home care options.
“We are very excited about the opportunity to improve access to home care,” he told HHCN. “There are many models that achieve a critical mass with regard to this effort.”
Some examples, he said, are hospital-at-home models, primary home care, community-based palliative care, and more.
On July 27, 68 systems and 147 hospitals in 32 states participated in the hospital-at-home suspension program launched last November in response to the COVID-19 emergency by the U.S. Centers for Medicare & Medicaid Services (CMS ) was launched.
“We definitely hope that we are lucky enough to find innovative companies that are part of this wave towards home,” said Witty.
With the public launch on Tuesday, Valtruis hopes to accelerate its investment search and find potential partners in the not too distant future.
“Of course, I hope that we can deploy a significant part of our capital within the first 12 months,” said Witty. “Once we’ve put our money into the work, we can really be busy helping these companies develop their business models and improve their patient experiences. This is the final for us. “
While there are other investment groups that focus on value-based nursing, Witty believes Valtruis has an advantage because of the diverse experiences of its executives.
Most recently, Bahl was President and CEO of OneOncology, a network of leading community oncology practices in the United States. Haghgooie was now the managing director of the Blue Venture Fund and Sandbox Industries.
“We believe Valtruis is well positioned to leverage WCAS’s longstanding relationships and history in building market-leading healthcare companies, as well as tremendous operational talent and expertise to provide a differentiated resource for emerging companies looking to accelerate value-based care adoption.” said David Caluori, general partner at WCAS, said in a statement.