Healthcare is a natural area of interest for impact investors, as the purpose of impact investing is to gain financial returns while also making a tangible, beneficial social or environmental impact. As of 2019, the global market size of impact investing was said to be already at around $228 billion (and increasing) — considering the relative newness of this type of investment strategy.
But even with its apparent novelty, impact investing is already making a difference in the world. It has given venture capital fund managers and socially conscious investors a new form of investment that provides both financial and social returns. In essence, it makes you feel good while making you money. What’s even great about it is that impact investing has been generally successful in delivering both the financial and social impact it promises.
If you’re looking into branching into impact investing and wish to know about the trends in impact investing in healthcare, you’ve come to the right place. Here, we present three major trends in healthcare impact investments:
1. Lower healthcare costs
One of the main thrusts of impact investors is in driving cost containment and addressing systemic inefficiencies. By identifying pockets of inefficiency in the healthcare system, as well as areas of overearning at the expense of patient welfare, these undesirable practices are easily and quickly weeded out to make way for beneficial changes and improvements. This allows impact investors to focus on key business areas that are critical to the reduction of costs while ensuring high-quality care and service delivery to patients and their payers.
2. Multi-specialty physician practices
Another area of interest to healthcare impact investors is the rise of multi-physician groups or practices. Here, it is physicians who make the final decisions, with the wellbeing of their patients at the forefront of the decision-making process.
Multi-specialty physician practices have the built-in capacity to deliver superior clinical care and better patient experiences. Why? Because the practices of multi-specialty groups are anchored on actual evidence that influences the decisions they make. They also have the knowledge and insight needed to diagnose complex health conditions and make appropriate clinical analyses. Best of all, they are also trusted by patients and can provide better services at lower costs.
3. Technology-driven development
Information technology is a critical component of the healthcare industry, as it improves efficiency and increases capabilities. Whether it’s medical or computer technology, or a combination of several technologies, healthcare IT is an area of interest among impact investors, as healthcare facilities can deliver better care at a lower cost with the right technological solutions.
Aside from database management technologies and new hi-tech medical equipment, such as those used in critical care (e.g., patient monitoring, respiratory and cardiac support, pain management, emergency resuscitation devices, etc.), artificial intelligence is already being utilized by primary care physicians for recording notes. Doctors can also use AI in collecting and analyzing patient data and conversations, among other things.
Find out if impact investing is for you
If you’ve been searching for opportunities to grow your wealth while making a difference for the greater good, impact investing in healthcare is an investment avenue worth exploring. Of course, impact investment is not limited to this; however, this market is one of the most promising of its kind.
To know more about impact investing, particularly into the healthcare industry, please don’t hesitate to get in touch with us at gTC.