Baird Global Healthcare Report 2016-2017 Global Healthcare Report | Page 12
Global
Investment Banking
Institutional
Equities & Research
Baird Capital
A Prescription
for Growth
Baird Capital’s
Outlook on Infection
Prevention and Control
AUTHORS
MICHAEL LIANG
PARTNER
BAIRD CAPITAL
NICOLE WALKER
PRINCIPAL
BAIRD CAPITAL
With an increased focus on hospital-acquired infections
(HAI) and managing associated costs, many hospitals
increasingly look to market on the quality of the care they
deliver. Today, consumers can go online to find HAI rates and
penalties paid for every hospital in the nation, using that
information to make choices about where they will seek care.
Payers can reference these data to determine negotiating terms.
The potential bottom-line impact on hospitals, along with
increasing fervor around patient advocacy and rising concerns
about antibiotic-resistant bacteria, have been catalysts for
the ongoing investment activity and opportunity in the
infection prevention and control space.
10
When people are admitted to hospitals, they
typically expect to be cured versus discharged with a
new infection due to exposure or a procedure. However,
this phenomenon is fairly common. The U.S. Department of Health and Human Services reports that in
hospital patients has a healthcare-associated infection
at any given time, and these infections generate
approximately $ billion to $ billion in preventable
costs annually. Additionally, a study published in
JAMA Internal Medicine found that infections acquired
in hospitals account for $. billion in costs each year.
Infection prevention and control is compelling from
an investment perspective for a number of reasons.
BREADTH OF IMPACT
Hospitals and healthcare systems are certainly a primary
focus for companies focused on infection control, but these
technologies and services are relevant across other areas,
including the food safety area, the agricultural market and
diagnostics for the identification of new outbreaks and strains.
CLINICAL STUDY PROCESS
Clinical studies typically involve a long duration for patient
enrollment and follow-up, and the results can be quite varied