Even after the crash in health care IPOs, there is still too much capital sloshing around and looking for a place to be wasted. Aledade raised an astounding $125 million to support its business of helping independent physician practices enter into "value-based" purchasing arrangements with payers. This firm has raised over $4oo billion in capital and is valued at billions of dollars, all for providing a commodity service in a declining market--the independent physician. Where has it all gone and how will investors ever see a return on it? The greater fool theory is the big hope in most cases. The fools were the public for a few years, but that is over now until the memory of these debacles fades, which it usually does pretty quickly.
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at [email protected].