A combination of Big Data analytics, artificial intelligence (AI) and cloud-based IT infrastructure is making a sizeable impact on the number of private equity transactions in healthcare. Use of these technologies by mid- to- large hospitals and physician groups is steadily improving healthcare service delivery for these clients as they analyze outcomes, optimize care delivery and improve patient experience. Their impact on operational efficiency over the last 3 - 4 years has been quite significant. 

A good example is Capsule Technologies, a Qualcomm divestiture that was recently acquired by Francisco Partners. The company connects medical devices to clinical information systems so that hospitals can capture and visualize clinical data to monitor patient health and improve care. Some of the other investments in this space include:

  • Spectrum Equity's investment in Compass, a provider of healthcare reimbursement technology and price transparency solutions
  • Arlington Capital Management sale of Avalign Technologies, a provider of solutions to the orthopedic medical device and specialty surgical markets, to Linden Capital Partners
  • TA Associates investment in Behavioral Health Works that has improved its use of technology
  • Clayton, a FastMed Urgent Care (and portfolio of Abry Partners) merger with NextCare Holdings