Investment Focus » Outsourced non-core services

Healthcare has lagged other major industries in recognizing the cost and performance benefits of purchasing non-core services from vendors with greater scale, technology, and experience. In recent years, the outsourcing trend has gained momentum in both the medical and non-medical aspects of healthcare as institutional healthcare providers have come under increasing pressure to provide a lower cost, higher quality service. The growth of our portfolio company EnduraCare reflects the difficulties experienced by acute care and long-term care institutions in recruiting and retaining skilled therapists, as well as in mastering the complexities of reimbursement for these services. We believe that outsourcing will continue to increase as a percentage of total healthcare expenditures and that there will be significant opportunities to consolidate fragmented, though relatively large, sub-sectors affected by this trend.

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