Two Worlds Collide (in a good way)!
A theme we like a lot, and have had good experience with, is the intersection of healthcare services and consumer. Why?
- Broadly speaking, healthcare services and consumer are two huge markets: healthcare services is a $2.3 trillion market growing at 3.7% YOY and consumer products and services, broadly speaking is a $13.4 trillion market growing at 1.6% YOY (accounts for roughly 66% of GDP).
- From a more focused perspective (the MHT perspective), we see a couple of dynamics at play:
A) With respect to healthcare services, with static wages and the increasing prevalence of high deductible healthcare plans (especially with smaller companies), consumers of healthcare services are more discerning of where they spend their scarce dollars. Perfect information available online has only ratcheted up the importance of healthcare providers who are digitally smart and savvy with their marketing and who also provide the consumer a good-to-great “experience.” We’ve been fortunate to represent a couple of leading dermatology providers who provided not only great medical care, but also an outstanding experience to their patients. In the same vein as dermatology, we also like other “consumer-” facing medical services and, in particular, those with a private-pay angle, such as fertility, urgent care, orthopedics, ophthalmology and allergy specialists.
B) On the flip side, from the consumer perspective, consumers like (i) products and services that keep them out of the hospital or doctor’s office, (ii) health procedures that are discretionary, but also “permitted indulgences” (e.g., cosmetic procedures), and (iii) products and services that have a “wellness” angle (i.e., make the consumer feel better – either physically, mentally or both).
Find a company that offers you all of the above, and I’ll show you a company with a third highly attractive dynamic – the ability to create a lot of wealth!