FAMILY OFFICE COMPLETES FIRST HEALTH CARE DEAL WITH ACQUISITION OF CALIFORNIA MED DEVICE FIRM
Posted on Crain’s Grand Rapids Business September 7, 2023. Read original article here: https://shorturl.at/aAGM8
Granger Health, a new West Michigan-based investment entity targeting the health care industry, has completed its first acquisition by buying up the assets of a California medical device company.
A part of the Wyoming-based family office Granger Group of Companies LLC, Granger Health created the TracPatch Health LLC affiliate, which recently acquired the assets of Sacramento-based TracPatch Health Inc.. The deal included a debt restructuring and relocating the company to West Michigan from Sacramento, Calif.
Granger Group Chairman and CEO Gary Granger first heard of TracPatch from a friend who told him that the company was experiencing governance and financial issues. After looking into the opportunity and talking to people who used the device, Granger decided to pursue the deal.
TracPatch, which developed a wearable device that uses sensors to remotely monitor a patient’s progress after orthopedic knee surgery, represents the start of the Granger family’s deeper investment in health care, he said.
“What we do is we look at company opportunities where there could be an opportunity to add significant value, and that’s what we see in this opportunity with Granger Health starting off with TracPatch,” Granger told Crain’s Grand Rapids Business. “We have looked at segments that we think are going to be real value-add. This is the first of more to come. What you will see are some spaces that we would like to get involved with that we think we can add a lot of value.”
Granger Group started in 1997 as a commercial real estate development and management firm and developed projects such as Metro Health Village in Wyoming, now home to University of Michigan Health-West. The company got into investing with the formation of Granger Capital LLC in 2021.
Granger Health, which will manage TracPatch, became an LLC in March 2023, according to state records. Holly McAlpine, a product development and marketing executive, leads Granger Health as managing director.
Terms of the transaction were undisclosed.
Granger Health is currently considering two or three additional acquisition opportunities that include a Midwest physical therapy company, said Jason Granger, who leads family office investments for the Granger Group.
“This is kind of the beginning of where we’re headed with our investment in health care,” he said.
The TracPatch device was designed to provide orthopedic surgeons greater insight into how well patients are recovering from knee replacements or ACL reconstructions in the knee. Future potential uses include for patients with hip replacements, lumbar spine surgeries, shoulder replacements, and posture and musculoskeletal issues.
Sensors monitor a patient’s post-surgery range of motion, how well the body moves and other measures, and they can tell whether a patient adheres to post-surgery stretching and exercise routines. A software analytics platform that works with the device can identify, flag and report issues to a surgeon, who can then adjust a patient’s post-operative care accordingly.
“If a patient is running into an issue, the doctor or their staff step in and have that patient in sooner,” Jason Granger said.
Granger Health has been working with large orthopedic groups in Texas, South Carolina, Florida and Illinois on pilots to measure the data the device generates. TracPatch currently uses a subscription model to generate revenue.
Because of the potential to reduce complications and improve outcomes and costs, the company now aims to secure reimbursements from health insurers for so-called episodes of care for patients that undergo orthopedic procedures, which are growing in volume as the population ages.
“The best opportunities for reimbursement are in the area of the orthopedic arena,” Granger said.