Investment Thesis Report: Third Party Administrators in Healthcare

Healthcare TPA-like startups and disrupters are gaining the attention of investors and are facing high volumes of M&A activity by private equity firms and insurance companies. Upon extensive research and analysis, FCA Venture Partners is interested in investing in this space.

Here is a brief excerpt from this report: “In 2020, with over 49% of healthcare in the US being employer-sponsored, many companies have heard their employees' frustrations with rising costs and declining benefits. Businesses have seen their profits deteriorate and their employees’ dissatisfaction increase. Partially in response, the prevalence of self-funded employer-sponsored healthcare has grown by a third since 2000. With such a large portion of healthcare spend being funded by employers themselves, TPAs have gained the spotlight of healthcare investors around the world due to their necessary role in the claims management process for these plans”.

View the full report here (PDF)

Thanks to Matthew Pianka for authoring the report