Cain Brothers Newsletters: Industry Insights
“Industry Insights” is a bi-weekly email newsletter published by Cain Brothers, a division of KeyBanc Capital Markets. The newsletter features innovative and original perspectives about healthcare services, healthcare IT, and life sciences from our team of experienced investment bankers. Read the latest newsletter content below, and subscribe to start receiving the newsletter in your inbox.
Return to growth mode at Cain Brothers' 2025 Private Company Healthcare Conference
Cain Brothers, a division of KeyBanc Capital Markets, convened its 12th Annual Private Company Healthcare Conference on October 14 and 15 at the New York Lotte Palace Hotel.
From a small gathering in Westchester County 12 years ago to the premier private company forum for senior healthcare leaders and private equity and venture capital investors today, this year’s conference featured:
- More than 450 top leaders and senior representatives from healthcare companies, private equity, venture capital, and healthcare-related corporations.
- More than 50 participating companies, spanning nearly all sectors of the healthcare economy, reflecting the breadth and depth of Cain Brothers’ industry coverage and relationships.
- Two keynote discussions on urgent industry topics.
- More than 540 one-on-one investor meetings with company founders and CEOs.
In his opening remarks, Wyatt Ritchie, the head of Cain Brothers, observed that the excitement of this year’s event reflects an improving M&A market after several years of restrained activity.
In line with that, Cain Brothers, with the support of KeyBank, is in growth mode. To serve and support its clients, Cain Brothers leverages its deep sector knowledge and balance sheet and the sophisticated capabilities at KeyBank. The firm’s capital transaction and funding are up year over year, suggesting that deal-making will be robust in 2026. In addition, the firm has added new senior bankers to expand its expertise and network of relationships, build out its health tech coverage, and drive higher capital raising capabilities.
Despite the promising turn in deal-making, the healthcare industry is experiencing significant headwinds. The three primary funders of coverage — the federal government, state governments, and commercial insurers — are simultaneously facing financial constraints that indicate the status quo is unlikely to persist.
That mix of challenges and opportunities was reflected in the private company presentations and the two keynote discussions.
A Policymaker’s Perspective: The State of Health Care
The first keynote was a timely discussion about the government’s perspective on developing trends and opportunities for industry transformation. Cain Brothers’ thought-leadership partner, Dave Johnson, the CEO of 4sight Health, had a lively banter with Michael Chernew, PhD., Professor of Health Care Policy at Harvard University and Chairman of MedPAC, the Medicare Payment Advisory Commission.
MedPAC is the independent congressional agency established to advise Congress and health plans on issues affecting Medicare. Despite this important service, MedPAC operates relatively under the radar, largely because it focuses on the analytical nuts and bolts of payment. For example, “How should the country deal with risk-adjusted coding in Medicare Advantage?” Or, “What’s the right way to pay for Part D drugs?”
Nevertheless, Chernew was not shy about making bold statements. Specifically, as a healthcare economist, Chernew countered two core tenets of industry innovation and cost containment: “Prevention saves money and price transparency will transform healthcare.”
Dave Johnson forced Chernew to back up these challenges to conventional wisdom in a conversation that delved into the intricacies and complexities of the healthcare system.
Smarter Care: The Future of Health Care with AI
Finally, on Thursday, Cain Brothers’ Managing Directors Stacy Guffanti and Thad Davis facilitated a panel with Marina Kusserow, Operating Partner A16Z, Asif Dhanani, Principal, Rubicon Founders, and Tod Pesses, Principal, Silversmith Capital Partners, on the rapidly expanding deployment of artificial intelligence in healthcare administration and operations.
The panelists defined AI as not just machine learning applied to workflow, but software that’s learning and adapting to real-world experiences and uses. AI offers the opportunity to deliver dramatic returns on investment in new technology.
As Tod Pesses said, “We’re incredibly excited about the opportunity to deploy capital and support entrepreneurs building really impactful AI businesses.”
Adoption has been faster in administrative rather than clinical areas. Trust in AI remains tentative among physicians and patients. But provider organizations have been deploying AI more readily than payers, seeing the technology as a potential lifeline or panacea for constrained margins. For payers, the potential to leverage AI to refine risk, direct services more cost-effectively, and validate utilization management will likely be the focus of the next wave of investment.
At a conference where conversations about future possibility and the complexities of the present went hand in hand, it was a fitting end to Cain Brothers’ 2025 Private Company Healthcare Conference. Remember to follow House Calls to listen to our panel discussions later.
Archives
See our monthly industry insights below:
