An insurer branches out into venture capital

Mutual interest between private equity and the healthcare industry has produced some headline-grabbing deals in recent years: Oak Hill Capital Partner's joint venture with the largest U.S. Catholic health system; venture funds launched by large health systems, including the latest by Rex Healthcare ; and the buyout of a struggling Boston health system by Cerberus Capital Management.

But beyond these flashy deals is an influx of capital into healthcare from private investors, including a string of deals during the past 12 months by the newly formed investment arm of Cambia Health Solutions.

Cambia, a not-for-profit, was previously the Regence Group, an insurer in the Pacific Northwest.The newly named company now operates two business lines: Regence, which continues to sell health plans, and a division that builds, buys and invests in healthcare companies, its executives said.

You can follow Melanie Evans on Twitter: @MHmevans.


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