INVESTING WITH VISION
Innovation in information technology has radically altered business models in most sectors.
But the healthcare sector has been slow to change, even though tech enablement is proving itself invaluable in improving patient care while lowering costs. With decades of experience investing in healthcare companies, we’ve identified five healthcare subsectors where our skills and knowledge of information technology can have the most transformative impact — making it possible to scale and capitalize on profitable niches often overlooked or ignored.
Our Strategies
01
Value-based Primary Care
The dynamics of managing actuarial risk will shift from payers to well-equipped and well-capitalized providers that are actually able to influence patient care management. Executing this requires a technology-enabled capability to measure activity and utilize telehealth, remote monitoring, and care management to optimize time, place, and resources for interventions.
Kain partnered with Excelsior Integrated Medical Group, a largely fee-for-service, primary care focused medical group, to assist management in the transition to global capitation and growing providers. Excelsior is currently focused on the Asian American population in the five boroughs of New York City and manages roughly 100,000 lives. Kain recruited executives that have helped Excelsior grow providers by 75% and sign multiple full risk capitated contracts. Excelsior continues to consolidate the New York City market, with many independent providers looking to join a strong medical group, separate from the hospital systems, that has financial accountability of its patients. In November 2022, Excelsior merged with Rendr Care to create the largest Asian focused primary care group in the country serving roughly 220,000 patients. Kain has been able to convert 75%of Rendr's primary care patients to full or partial risk (115,000).
Kain partnered with MY DR NOW, a leading primary care provider in the Arizona market with over 80,000 active patients. MDN is focused on providing quality, affordable care, that optimizes customer convenience and access. MDN offers care through well located sites in retail shopping areas that are open seven days a week with extended hours that are convenient for families and working adults. MDN provides significant services via video visits and in-home visits by their medical professionals. Kain is accelerating MDN's growth by adding numerous new sites that will help increase access to primary care in Arizona. Kain is working with MDN to embed appropriate technologies to enhance the quality of care and patient experience.
Kain partnered with Essen Health Care, the largest independent primary care and multispecialty group in New York City. Essen cares for ~16% of the population of the Bronx and is fully integrated to offer the continuum of care to its patients with 450+ providers across the traditional office setting, urgent care, and home and nursing home visits. The Bronx remains a very underserved market, with 80% fewer physicians than Manhattan and both higher poverty rates as well as higher prevalence of medical conditions. Kain’s investment will help bring more access and engagement to patients in the Bronx to improve the health quality among the population. Kain will assist Essen in continuing to consolidate the Bronx market and transition the business to value-based care and risk contracting.
02
Hospice & Palliative Care
In addition to being able to leverage many technology tools to enhance provider productivity and patient care, Hospice and Palliative Care will benefit from general transformations to offering care at the place most convenient and preferred by the patient. A large amount of medical spending occurs in the last six months of life and the outcomes are dismal. Hospice care offers a more human way to manage the end of terminal illnesses allowing those to live in a dignified manner without sacrificing longevity. A broad set of tools can be utilized to ensure hospice care is deployed in a more timely manner within the healthcare system for the benefit of patients and payers.
Kain launched PERA, LLC to acquire well run, mid-sized local and regional hospice and palliative care companies. Kain partnered with an outstanding team of eight veteran hospice executives who have codified industry best practices. From this operational basis, PERA will provide a set of shared services and assistance to regional operators who continue to run their local hospice operations. PERA is currently serving multiple states and will seek to continuously grow its geographic footprint. PERA brings advanced technologies into operations to enhance the quality of clinical care and automate administrative, revenue cycle, compliance and regulatory management. PERA seeks to integrate and partner with local, regional, and national health systems to provide palliative and hospice services.
03
Occupational Medicine & Workers’ Compensation
After decades of underinvestment in technology and a recent deterioration of service caused by a merger of the two largest players, employers are seeking a scaled player that can provide better outcomes for their employees. Occupational medicine and workers’ compensation offer great opportunities to innovate in use of managing care episodes with remote monitoring, telehealth, tele-rehab and other tools that will provide lower costs, improved outcomes and better measurement and reporting to both employers and patients.
Akeso Medical Holdings is focused on consolidating the workers’ compensation clinic market and building de novo clinics. Akeso was formed after Kain watched the deterioration of service in the industry as the largest player closed and reformatted clinics to urgent cares, leading to increased wait times and higher costs for employers. Employers are eager to find an alternative, geographically viable clinic option that delivers lower cost, quality care and Akeso aims to fill that void. Akeso is building out new technologies to further advance this strategy and potentially offer to the broader market.
04
Specialized Behavioral Health Services
Behavioral health management has been limited by being so labor-intensive in delivery and inconsistencies in diagnoses, treatments, and standards of care. There is a great opportunity to improve on all of these dimensions through tech enablement and customization to meet the patient’s needs. Many low and moderate acuity treatments can be automated, diagnoses and treatment plans can be customized and improvements and results can be tracked. The results are better outcomes at lower costs for patients and payers.
Kain partnered with an autism therapy platform in July of 2021 to fund a build-out of 50+ ABA centers across the country for a drastically underserved population. Kain believes that more autism centers will help families with young children diagnosed with autism gain awareness and access to therapy. As technology grows in the nascent industry, Kain will also be at the forefront of using it to enable best-in-class treatment.
05
Healthcare Technology
Certain technologies will be embedded to create and extend the technology enablement of healthcare. Kain Capital will look to invest in infrastructure companies to both utilize within its own portfolio and enable these companies to go to market with the best-in-class tools to grow significantly in value.
Kain partnered with MDLand, an all-encompassing value-based-care technology platform with an EMR, remote patient monitoring and population health tool. MDLand is headquartered in New York City and currently serves roughly 2,000 providers, helping enable primary care doctors in transitioning to value-based-care. Kain assists in continuously improving MDLand’s product offering and recruiting more physician groups onto the MDLand platform.