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Strategy - Investment Themes

FFC is Well Positioned to Take Advantage of Healthcare Industry Dynamics.

As a result of an aging population, the advancement of medical technology and the increasing prevalence of insurance, the healthcare industry is a large and growing rapidly. The projected healthcare expenditure growth as a % of GDP combined with large budget deficits and a growing national debt has led to national recognition that the status quo in the healthcare industry is unsustainable.

TOTAL PROJECTED HEALTHCARE EXPENDITURES BY 2020 (20% OF GDP)

PROJECTED GOVERNMENT DEBT AS A % GDP BY 2020

ESTIMATED % HEALTHCARE COSTS THAT ARE THE RESULT OF INEFFICIENCY

 

THE EXISTING DYNAMICS OF THE HEALTH INDUSTRY ARE UNSUSTAINABLE

Small Private Companies are at The Forefront of Shifting The Cost/Quality Paradigm
National Health Expenditures, 2006 - 2021

INCREASED EFFICIENCY
IS THE BEST WAY TO
"BEND THE COST CURVE".

FFC Has and Will Continue to Invest in Innovative Companies That Provide Products or Services with Higher Quality at a Lower Cost.

 

Source: CMS, Office of the Actuary, National Health Statistics Group.

 

Though the future of healthcare has been debated vigorously amongst industry participants and government leadership, certain elements of the discourse are not controversial: the industry must (1) lower expenditures ("bend the cost curve") through enhanced efficiency, (2) adopt, implement and optimize IT; (3) streamline care coordination and prevent avoidable readmissions; and (4) engage the consumer in healthcare decision making.

 

The Affordable Care Act ("ACA"), signed into law by President Obama in 2010 attempted to address many of these challenges and has catalyzed a series of private market initiatives that are transforming the industry. The implementation of the ACA has created a new paradigm in the industry, leading to significant opportunities for small companies with innovative business models that address the primary goals of lowering the cost of care and improving the quality of care. However, navigating and capitalizing on this new healthcare environment requires the experience and expertise of investment professionals that understand all the relevant constituents and the interconnectivity of each segment of the industry.

 

Since 1995, FFC has been exclusively focused on investing in small, innovative healthcare companies and is thus uniquely positioned to take advantage of the ongoing changes throughout the industry.