#Healthcare

Post-Acute Healthcare Technology

The U.S. population continues to age, creating a growing demand for post-acute healthcare services. LLR sees the opportunity for investment in technology that enables the transition from hospitals to long-term care facilities, in-home health services, and alternative treatment centers for high-acuity patients.

LLR has extensive experience investing in technology platforms and tech-enabled service businesses that help enhance operational efficiency among healthcare stakeholders. Companies and intermediaries working in this space should contact PJ Cusack to discuss related investment opportunities.

We believe the projected growth in this sector is driven by its cost efficiency compared to other settings like hospitals, the aging population’s preference for home recovery, and the shift to value-based care, aligning with the broader move toward more sustainable healthcare models.

PJ Cusack, Vice President, LLR Partners

Four Tailwinds Creating Opportunities for Post-Acute Healthcare

Aging population

Older adults appear to contribute to greater healthcare utilization and spending given they are often being treated for several chronic conditions and naturally require more medical attention as they age.

Shift to lower-cost care settings

The cost of hospitals is significantly higher compared to skilled nursing facilities, long-term care facilities, hospice care centers, and other post-acute treatment sites.1 Shifting patients into these settings helps allow for better, cost-controlled plans that can benefit providers, and more importantly, patients.

Focus on post-acute care optimization

Post-acute care optimization remains a priority area for Centers for Medicare and Medicaid Services (CMS) due to the Improving Medicare Post-Acute Care Transformation (IMPACT) Act passed in 2014.2 In response, CMS issued for improved discharge planning processes when transitioning patients from acute to post-acute care.

CMS also requires hospitals to provide patients with performance data on post-acute providers to help ensure proper facility selection and successful outcomes based on their condition.

Home-based care

Older adults increasingly desire to age in place, driving demand for home-based care. This was accelerated by COVID-19 as Skilled Nursing Facilities became hotbeds for COVID outbreaks.3

The value proposition for post-acute technology

20%
4
of the U.S. population is projected to be 65 or older by 2030
77%
5
of providers reportedly turned away new referrals due to staffing shortages

See You There?

January 19, 2025
HomeCare100
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Key Focus Areas for LLR Investment

LLR is focused on investing in companies that create technology to enable the shift from acute to post-acute care, specifically:

Patient Referral Management: Solutions that enable and optimize customer relationship management, the acquisition of new patients, and the movement of patients to the appropriate care setting.

Clinical & Operational Data Analytics Software: Solutions that look at patient data and predict what care is most needed next – both to enhance outcomes but also to optimize getting the right type of clinical resource to the patient at the right time.

Care Delivery & Workflow Software: Solutions that support delivery and optimization of care to patients, and coordination of care by clinicians across different care settings and provider organizations.

Get to Know LLR Partners

25 Years of Investing in Technology & Healthcare

  • Founded in 1999, LLR is a growth oriented private equity firm investing in high growth technology and healthcare companies.
  • Raised over $7.0 billion of capital across seven funds.
  • We are focused on organic, topline growth initiatives and complementary acquisitions to help create value for all stakeholders.

Operational Support

  • Leverage best practices developed through codifying successful strategies across our 130+ investments since inception.
  • Access LLR’s Value Creation Team (strategy, talent, GTM, product, finance, M&A) to help accelerate growth.

Focus on Partnership

  • Flexible capital provider (majority or minority ownership).
  • Reward and motivate key players with equity.

Investment Criteria

  • Ability to invest $30 – $150M of equity.
Select Industry Investments

LLR seeks to invest in the sectors where our investment experience indicates there are attractive business models and market trends supporting growth potential. Here are some of our related investments in post-acute services and technologies.

Meet the LLR Team

Scott Perricelli

Scott Perricelli
PJ Cusack

PJ Cusack
Austin Burt

Austin Burt
Will Greenberg

Will Greenberg
Thomas Reinhart

Thomas Reinhart

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References

  1. “Cost and Case-Mix Differences Between Hospital-Based and Freestanding Nursing Homes,” National Library of Medicine, 2023. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4191523/
  2. “IMPACT Act of 2014 Data Standardization & Cross Setting Measures.” Centers for Medicare & Medicaid Services, 2024. https://www.cms.gov/medicare/quality/initiatives/pac-quality-initiatives/impact-act-2014-data-standardization-cross-setting-measures
  3. “The Impact of COVID-19 on the Person-Centered Care Practices in Nursing Homes.” National Library of Medicine, 2023. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9899667/ 
  4. “2020 Profile of Older Americans.” 2021. https://acl.gov/sites/default/files/Aging%20and%20Disability%20in%20America/2020ProfileOlderAmericans.Final_.pdf
  5. “The State of America’s Direct Support Workforce Crisis 2023.” American Network of Community Options and Resources (ANCOR), 2023. https://www.ancor.org/wp-content/uploads/2023/12/2023-State-of-Americas-Direct-Support-Workforce-Crisis_Final.pdf
Disclaimer:

The information presented herein is intended for an audience of potential LLR portfolio companies and the intermediaries supporting their capital raise processes. Named LLR investments presented herein do not reflect a complete list of LLR investments and are provided for informational purposes only. Certain statements about LLR made by portfolio company executives and other quoted parties herein are intended to illustrate the work of LLR’s Value Creation Team with such portfolio companies or reflect the individual’s perspective on the featured industry sector. Such portfolio companies are controlled by investment vehicles managed by LLR. Quoted parties were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company or Senior Operating Advisor roles, and in certain cases are also owners of portfolio company securities and/or investors in LLR-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.