There’s no question that the U.S. healthcare industry is undergoing big changes. For starters, there is the biggest: the Affordable Care Act (ACA), which was passed by Congress in 2010 and signed into law by President Obama. The ACA, which was put in place to bring down U.S. healthcare costs and provide insurance coverage for more Americans, also contains provisions for moving to electronic health records, raising the accountability for healthcare providers to generate positive outcomes and forbids discrimination due to pre-existing conditions and gender.
While the healthcare industry continues to evolve at a rapid pace, many investors are wondering how to use their money wisely in healthcare funds. America’s ER, a Florida-based for-profit investment company, has announced what it’s calling “the first of its kind within the for-profit retail medicine market.” The National Healthcare Development Fund, LLC (NHDF) is specifically designed to generate revenue for its investors from both its portfolio of real estate asset holdings in addition to its operational interests in an emerging healthcare market that is thriving as a result of supply failing to meet an overwhelming and increasing demand.
The fund is based around the creation of what’s called “Freestanding Emergency Department (FSED),” which is like an emergency room without a hospital. The fund’s administrators believe that the opportunity for such facilities is nearly without limit, as the U.S. graduates fewer and fewer general practitioners to handle the types of problems presented at urgent care facilities.
"The National Healthcare Development Fund is the first asset- and operationally-based hedge fund of its kind designed specifically for the FSED retail healthcare industry. Created to take advantage of this emerging market, NHDF will offer a unique investment alternative while providing a profitable solution to the nation's healthcare challenges," said Ronnie Hale, portfolio manager of NHDF, in a statement announcing the new fund.
The Fund is currently raising $30M for six FSED facilities. NHDF plans on opening several $30M closed-end funds with up to six free standing emergency rooms in each.
Edited by Rich Steeves