A Non-Executive Viewpoint: Unlocking Innovation

Featured in LDC’s healthcare sector report.

With more than three decades of experience in the healthcare sector, KP Doyle has successfully led five private equity exit transactions. He is the Non- Executive Chair of LDC-backed multidisciplinary healthcare services provider Cora Health, following the merger of Connect Health and Healthshare in December 2024.

Here, he shares his views on the trends affecting the sector, what makes a successful healthcare business, and his experience working with a private equity partner.

Services in the community

“With an ageing population and escalating demand for services, healthcare delivery in the UK continues to evolve at pace, creating substantial opportunities for agile and innovative businesses that can respond to the latest trends. One of the most significant is more services being delivered in the community to reduce pressure on hospitals – unlocked through more partnerships and choice for patients.

“GPs are obliged to give their patients options when referring them for further treatment, and as a result, we’re seeing more people choose independent healthcare providers. This is opening doors for a range of ambitious healthcare businesses, while driving sector competition and innovation, and helping to create resilience within the system.

“There’s also an opportunity for independent providers that offer community pathways, which transcend primary and secondary care, to create a more efficient single-point-of-access for patients. This approach can not only standardise and streamline care processes, but it can also help to reduce health inequality as all patients experience the same pathway at the same time – regardless of where they live or their background.”

Technology-enabled businesses

“Technology is important in almost every element of healthcare, and a good CTO can now be as important as a CFO when considering M&A activity within the sector.

“Management teams should ensure they can make a strong business case to outline the commercial opportunity technologies offer and their projected impact to the business and investors – whether that’s AI, new software, or greater digitisation – all of which can by used to drive productivity and outcomes.

“A good, potentially unexpected, example of where we’re seeing innovation improve healthcare outcomes is in call centres, which are essential for efficient referral and pathway management. Often, primary care providers have legacy analogue systems, which can make digital interchange to access primary care records difficult. However, the evolution of technology, and the use of robotics is increasingly helping to streamline processes.

“With backing from the right private equity partner, investment in technology like this can be transformational for healthcare businesses – increasing efficiency, reducing cost, and above all, improving patient care.”

Common characteristics of successful healthcare businesses

“Without question, the standout characteristic of a successful healthcare business is prioritising people and their care. It’s also essential to have a dynamic and differentiated, but balanced strategy that drives a business’s future growth and innovation.

“Having the right team in place is also essential. As a Non- Executive Chair, it’s important to be involved in creating and driving strategy and supporting the CEO in their mission to successfully embed it across the organisation.

“Given the critical importance of the services we provide, a fear of failure is natural, but this shouldn’t deter management teams from actively exploring new and innovative avenues for growth. As long as a test-andlearn approach doesn’t risk affecting medical outcomes, businesses can and should try new initiatives within safe boundaries – it’s all about creating an environment for people to adapt quickly and drive continuous improvement within the sector.”

Private equity and working with LDC

“As an experienced Non-Executive, I’ve seen just how effectively private equity can work with management teams, when it operates as a partner, and an extension of the team, rather than just an investor.

“LDC does just that. The firm has a proven track record in helping to scale innovative healthcare businesses; both organically and through acquisition. It really is exceptional at putting potential M&A opportunities in front of its portfolio businesses.

“A standout part of LDC’s proposition is its Value Creation Partner team which played an essential role in ensuring a seamless integration of our two businesses, helping with culture, productivity, and effectiveness – I can’t stress enough the hugely positive impact that this has had.

“From the start of our relationship, the LDC team has been accessible, welcoming, and is clearly very well respected in the market.“