Investing in healthcare
Our view on the healthcare market
Across the world, the upward pressure on healthcare spending is relentless. As new treatments become available, our capacity to extend and improve people’s lives is taking giant strides. This creates a huge set of challenges for governments and healthcare professionals.
In the west, healthcare ‘consumers’ expect every expensive new treatment to be instantly available. And as more and more people live past 80, healthcare costs are escalating rapidly. Further pressure is added through non-essential and aesthetic surgery, and by the impact of obesity.
Funding pressures are severe everywhere. In the US, healthcare expenditure represents 15% of GDP, with limited room for growth. In the publicly-funded and relatively inefficient hospitals of Europe, spending levels are rising but efficiency gains are slow.
Whilst billions of extra euros will undoubtedly find their way into healthcare, the system will simply not deliver without huge strides in efficiency and innovation.
That is where we believe venture capital and private equity will play a vital role:
- Making research, development and production of drugs more cost-effective by harnessing the capabilities of Asia
- Nurturing disruptive new pharmaceutical products and medical technologies and helping them achieve commercial success
- Supporting service businesses that provide simpler and more effective ways of delivering drugs to patients
- Pioneering fresh service models that see more people cared for at home and in specialised treatment centres.
At 3i, we have an on-the-ground presence in three continents and a strong rapport with leading healthcare industrialists, clinicians and policymakers. By taking a global view of trends and migrating innovation to where it is needed, we are determined to play a strong part in the efficiency challenge facing global healthcare.
Alan MacKay
Lead Partner, Healthcare, 3i