CalPERS-Backed Firm Invests in Improving Health Care Efficiency
The CalPERS-backed equity firm Health Evolution Partners has announced plans to invest $150 million to $200 million per year in companies that are working to boost health care efficiency and lower costs, Bloomberg reports.
David Brailer, head of the firm and former national coordinator for health information technology, said his organization already has invested more than $120 million in 30 companies.
Some of the companies Brailer has invested in are working to improve:
- Electronic chemotherapy pumps;
- Personalized health insurance plans;
- Pharmacy capabilities; and
- Radiology technologies.
CalPERS' $1 billion investment in Health Evolution Partners is among the largest sums it has staked in a first-time private equity manager.CalPERS officials said they expect Brailer's firm to generate returns of 20% to 30% per year on the pension fund's investment (Mullaney, Bloomberg, 10/23). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.