How One Family Office Executes Healthcare Investments

Doshi Capital is investing in technology aimed at improving patient care

Using technology to eliminate inefficiencies in patient care is the aim of one family office managing the funds of two doctors.

Amit Chokshi, CFA, chief investment officer at Doshi Capital Partners, explains that the investments are primarily direct, and lean towards privately owned companies in the healthcare space. The first two investments were in software platforms.

The deal flow for these types of investments typically comes from the family’s internal network and healthcare-focused incubators. Doshi only invests directly if it’s able to add incremental value, says Chokshi.

“The family has a Rolodex [of contacts] in the healthcare space so there’s an ability to jumpstart a company’s growth and de-risk our investment,” he adds.

As an LP, DCP prefers to partner with PE firms that focus on a specific industry niche or on companies in the lower middle market. “Industry specialists and firms that operate in a smaller part of the market will tend to have deal flow that is not fully tied to auctions, which inherently lead to higher acquisition multiples.”

Doshi was started in 2005 to manage the funds of doctors Nitin and Leena Doshi after selling a majority ownership in Doshi Diagnostic Imaging Services to Evercore Capital Partners, the private equity division of Evercore Partners. The family has stakes in chemical companies, real estate, technology, and public securities.

The family office recently made two investments into software platforms focused on patient analytics and engagement. The firm declined to name the companies for competitive reasons.

The first investment is in a company that offers chronic care management (CCM) solutions for Medicare patients of primary and specialty healthcare providers. After signing an agreement with a practice, the company establishes an automated-care plan for eligible patients. Apart from access to an around-the-clock care team, the doctor and staff can view patient health data online. The software is compliant with non-face-to-face care coordination services and also has the potential to create recurring revenues for the doctors by encouraging patients to adhere to CCM protocols.

“Delivering quality patient care is vital to physicians and this particular investment allows them to achieve this while also improving practice productivity,” says Chokshi.

Another recent investment is a practice-management platform designed to streamline the patient appointment booking process, as well patient recall and retention. The platform allows providers to deliver better care while also increasing practice productivity and efficiency.