The locally run Heritage Healthcare Innovation Fund has finalized its third investment, backing an Arizona-based team of industry veterans looking to bring data tools, clinical support and more efficiency to the big business of joint replacements.
In putting an undisclosed amount of cash into Intralign alongside big investor Altaris Capital Partners, the backers of the Healthcare Innovation Fund said they see a lot of potential in the company's efforts to improve the $20 billion orthopedic surgery market. Intralign's leadership team previously ran medical equipment reprocessor Ascent Healthcare Solutions, which was bought by Stryker in late 2009 for $525 million.
“As a strategic fund, we invest in companies that provide innovative solutions to the challenges faced by our partners,” said Rock Morphis, managing director of Heritage Group. “We are excited to be part of a company with such a disruptive model led by a management team with a proven track record of improving quality and reducing costs in healthcare.”
The $200 million Healthcare Innovation Fund was launched two years ago by a list of big industry names, including local hospital chains Community Health Systems, LifePoint Hospitals and Vanguard Health Systems. The venture invests in companies that promise to cut costs out of the health care system and improve the quality of services delivered. Along with Morphis, David McClellan also runs the fund, which can invest up to $15 million in each of its portfolio companies.