The Story


Never in history has there been a better time to change and improve the $3 trillion healthcare system and lead the charge in its disruption. Seismic market drivers are shifting the industry to be completely digitized while we shift to new models of care.

Work with us and you’ll have partners who will help you navigate the never-ending complexities companies face while growing in the healthcare arena. We’ve been there and done it ourselves. We’ve gotten down in the trenches, raised financing, run companies, taken care of patients directly, disrupted industries and achieved highly successful exits. We’ve been in your shoes.

You’re not a “portfolio” company or a “deal” to us – you’re a partner. Just ask the CEO’s and founders we’ve partnered with.

Let’s build something great together.

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  • Graham Gardner
    Founder & CEO

    Graham Gardner

    Todd’s experience as both CEO and investor in healthcare IT combined with his extensive connections in the provider, payer and government healthcare world has provided big added value to me, my leadership team and the company. I can point to specific customer sales, company initiatives and hires that we successfully completed because of Todd’s direct involvement.
  • Jay Desai
    Founder & CEO

    Jay Desai

    The Transformation Capital team offers unparalleled healthcare insight, access, and experience. We receive invaluable guidance and tangible value through new customer introductions and more. Todd has been a fantastic advocate and mentor - and really a guy I just love working with.
  • Kevin Lustig
    Founder & CEO

    Kevin Lustig

    Transformation Capital is a great partner to have when you’re building a healthcare business. Their long history in healthcare and investing helps them make invaluable connections to potential customers, partners and investors. Some private equity investors make an investment and then sit back and relax; Jared, Todd and Vinay at Transformation Capital continue to work every bit as hard as the employees of the companies they fund.
  • Ryan Schmid
    Founder & CEO

    Ryan Schmid

    Transformation Capital not only understands, but shares Vera’s passion to define the future of healthcare. This, combined with their extensive experience and network has proven to be immensely valuable. Partnering with Transformation Capital has undoubtedly increased the value of Vera Whole Health.
  • Dan Burton

    Dan Burton

    Todd’s decades of operational experience in healthcare technology, combined with Jared’s clinical and financial depth make Transformation Capital a differentiated, focused healthcare investor.
  • David Ehrlich
    President and CEO

    David Ehrlich

    Transformation Capital’s focus and insight on innovation in the evolving healthcare landscape is invaluable, providing an unmatched understanding of the complexities only healthcare can bring. They have enhanced our partnership with their many years of expertise, high-value relationship network, and laser focus on the growing landscape of healthcare.
  • Luke Kervin & Travis Schneider
    Co-Founders & Co-CEOs

    Luke Kervin & Travis Schneider

    Transformation Capital is more than just an investor; they provide unique insights into the changing landscape of healthcare, and their deep relationships across the sector have opened doors with new customers, strategic partners, and other top-tier investors. Any healthcare startup on a mission to win big should play the game with Transformation Capital.
  • Colleen Nicewicz
    Chief Executive Officer

    Colleen Nicewicz

    Transformation Capital is a true strategic partner by continually adding significant value through both advice and insights, as well as helping us build our customer base and expand third-party relationships. By leveraging their deep healthcare expertise, we work side-by-side with our Transformation Capital partners as we execute on our mission to transform our industry.
  • Joseph Menzin, PhD.
    Founder and CEO

    Joseph Menzin, PhD.

    While Transformation Capital has only recently invested in Panalgo, we have found the team to be true partners in helping us grow the company. Jared is not afraid to roll up his sleeves to pitch in where he is most helpful to our business.
  • Peter Foley
    Founder and CEO

    Peter Foley

    The Transformation Capital team are incredible partners with a diverse skill set. They understand what is required to scale and bring unique expertise to the table to make this a reality. It's important to work with people who have done it all before and they certainly have that.
  • Nick Culbertson
    Co-Founder & CEO

    Nick Culbertson

    Transformation Capital offers unparalleled experience and understanding of the continuing evolution of the healthcare industry. Their long history in healthcare investment provides them insight that you won't find anywhere else in the industry. We are delighted that Transformation Capital has joined us on our mission to transform healthcare and bring our technology to every health system across North America.
  • Ryan McQuaid
    CEO & Co-Founder

    Ryan McQuaid

    We are excited to work with the team at Transformation Capital to be the largest and most loved virtual primary care provider for Americans across the U.S.  The experience the Transformation Capital team has provides us with unparalleled access to experts in healthcare. They are leaders in the sector and have provided us with invaluable advice, guidance, and knowledge.
  • Michael Martin
    Co-Founder and CEO

    Michael Martin

    We're excited to partner with Transformation Capital to connect our communities to public safety. The team's expertise and insights into innovative healthcare will be invaluable in pushing our mission forward. Together, we'll be able to empower faster and smarter emergency response globally.
  • Travis May
    Founder and CEO

    Travis May

    Datavant's vision is to connect the world's health data to improve patient outcomes. This is a vision that spans all of healthcare, and there is no better firm in the world than Transformation at helping us navigate the entire industry. They have served as valuable thought partners, industry experts, and connectors for us -- helping us realize that vision faster.

Healthcare: A Changing Landscape & Massive Opportunity

$3.4 Trillion of Spend and Growing…

Healthcare expenditures are on a direct path to comprise nearly 20% of U.S. GDP. These expenditures have grown steadily, and are expected to continue to grow, both in absolute dollars and as a relative share of U.S. GDP.1 Healthcare spending growth is expected to continue for several reasons, including most importantly the significant aging of the U.S. population: currently, 10,000 new baby boomers reach Medicare age each month.2 An aging population increases demand for the drugs, devices, procedures, and other services necessary to treat the many diseases – such as cancer, heart disease, diabetes and Alzheimer’s disease – whose incidence increases dramatically in older patients. Additionally, as the average life expectancy increases, patients need more care over a longer period of time, also driving up costs. And over 50% of the cost of care occur in the last two years of life.

Second, the percentage of the U.S. population that is covered by health insurance has increased materially, driven by key elements of the 2010 Patient Protection and Affordable Care Act (ObamaCare) including the individual healthcare insurance mandate, the expansion of Medicaid, and the introduction of state and federal exchanges for individual health insurance coverage purchase. While increased access to healthcare is an important goal of the Affordable Care Act, these newly insured patients add significant demand for healthcare services.

The continued growth in U.S. healthcare expenditures as a percentage of GDP appears unsustainable and the main constituents in the system – payors, providers, patients, biopharma, employers, and the government – will require technology-enabled solutions to address the increasing demands to control healthcare costs while ensuring high quality clinical care.

Accelerated expansion of the US Healthcare IT market, 2015-2020

healthcare-market20152020$25$0$75$100$125$55 Billion$104 Billion1.9xUSD (Billions)Year

Inefficiencies Prime For Disruption

The U.S. healthcare system is characterized by waste and inefficiency, and it often fails to generate top quality outcomes. A 2000 report of the World Health Organization ranked the United States 37th among the world’s health systems.3

A 2014 study conducted by the Commonwealth Fund compared 11 industrialized nations on a combined score for a range of healthcare-related factors, including quality, access, efficiency, and equity.

The United States ranked last in this study.4 A 2013 Institute of Medicine Report estimated that more than $750 billion – nearly one-fourth – of annual U.S. healthcare spending is wasted.5

Annual waste and inneficiency in the US healthcare system

waste-inefficiency$200$400$600$8000Unnecessary Services Excessive Admin CostInefficient Care DeliveryExcessive PricesFraudMissed PreventionSources of WasteUSD (Billions)

Seismic Market Drivers

This enormous and inefficient industry is in the early innings of a remarkable period of transformation in how products and services are selected, delivered and paid for, which is being driven by two seismic market drivers:

In the years since the Health Information Technology for Economic and Clinical Health (HITECH) Act was enacted in February 2009, more than $30 billion in government funding was allocated to incentivize physicians and hospitals to implement electronic medical records (EMRs).  EMR adoption is now above 80% in both the inpatient and outpatient settings from well under 30% only a decade earlier.6 This change has created an explosion in the amount of digital data that can be leveraged by innovative companies to analyze, compare and drive marked improvement in the quality and cost effectiveness of clinical care.

Rapid adoption of electronic health records, 2008 - 2015


U.S. healthcare reimbursement structures are shifting from a decades-old fee-for-service system of payments where doctors and hospitals are reimbursed for the volume of procedures they perform towards fee-for-value payment models where they are instead reimbursed for higher quality and more cost-effective care. The monitoring of care in these value-based structures requires new technologies and services to deliver improved outcomes. The transactional IT systems of the past in revenue cycle and the electronic medical record form the foundation of data from which these new systems driving value-based care are being built. These alternative payment mechanisms each have their own reimbursement rules, adding even more complexity to an already highly complex healthcare financial system and requiring new tools, systems and services to accurately record them and make sure each constituent is paid the correct amount.

Value-based spending, 2013 - 2015


The Transformation Capital Approach

Transformation Capital's 100% Focus

The U.S. healthcare system is uniquely complex: reimbursement mechanisms vary significantly by provider type and payor; the healthcare landscape has manifold stakeholders, often with misaligned incentives; and more than 40 regulatory bodies have some degree of industry oversight.

Domain expertise is crucial to fully understand the current state of the industry and to anticipate the ways in which its transformation will manifest itself into investment opportunities. We are well-suited to help you address this complexity. We’ve worked in healthcare our entire careers.

Tap into Transformation Capital’s Deep Operational, Clinical, and Investing Experience

Entrepreneurs building the companies shaping the future of the U.S. healthcare system are looking for more than just money from their investment partners: they are seeking investors with deep domain experience and company-building skills who can help them navigate the inherent complexities of the healthcare industry. The Transformation Capital team brings a powerful skillset from decades of healthcare investing, company building and operational and clinical experience to address the needs of entrepreneurs.

We have developed deep networks of relationships across the healthcare ecosystem as a result of our decades of focus on this sector. Our connectivity to decision makers and industry leaders has helped portfolio companies increase market access and accelerate sales.

Meet the Team

Transformation Capital: Helping Companies Grow

We bring a powerful combined skillset of healthcare investing, company building and operations and clinical experience that help us help you grow. We spend significant time helping our companies grow in a myriad of ways. We put our experience and extensive resources to work to drive growth by taking active roles in five key areas:

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    Mentoring and Coaching

    Having investors on the board who have been in founder, CEO shoes and have actually used healthcare IT products as clinicians has proven to be extremely helpful for the Transformation Capital partner companies. Regular 1:1 interactions, strategy sessions, on-call availability are all typical ways we work with founders, CEOs and executive leadership.

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    We draw on our extensive collective network in the healthcare system to help you recruit senior executives and independent board members and other key leaders.

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    Business Development: Specialized Operational Assistance and Leveraging Extensive Network

    We have a well-developed understanding of how healthcare stakeholders interact, how their systems work and how they must evolve to accommodate the rapidly changing environment. Additionally, the extensive networks of our team provide a rich source of potential leads for customer prospects.

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    Acquisitions and Other Strategic Transactions

    We’ve developed significant expertise in assisting companies with strategic transactions, including incremental and transformational acquisitions, needed for company growth. We draw on this expertise, together with our extensive network within the healthcare ecosystem, to assist our CEO partners with these critical transactions.

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    Optimizing Exits

    We have experience with successful exits by acquisition (by both strategic and financial buyers) and IPOs as both operators and investors. We believe our networks broaden the access to the universe of potential strategic acquirers for companies we partner with.

The Fund

Transformation Capital Partners, L.P. (“Transformation Capital”) is the successor management company to Leerink Transformation Partners LLC (“LTP”).11  LTP was founded in 2016 by Todd Cozzens and Jared Kesselheim, MD together with SVB Leerink Capital LLC (formerly Leerink Capital Partners LLC) (“Leerink Capital”), an affiliate of SVB Leerink LLC (“Leerink”), a leading healthcare investment bank.  Leerink Capital provided seed capital to Fund I (approximately 3% of capital commitments) and operational support. In January of 2019, SVB Financial Group (“SVB”), the holding company of Silicon Valley Bank, a U.S.-based high-tech commercial bank, acquired the Leerink businesses including Leerink Capital.  Todd Cozzens, Jared Kesselheim, MD and SVB expect to agree to a mutually beneficial ongoing relationship in which Transformation Capital (as an independent management company owned by Todd Cozzens, Jared Kesselheim, MD and Michael Dixon and not affiliated with SVB or Leerink Capital) shall manage Fund II and whereby Transformation Capital shall manage Fund I’s investment portfolio pursuant to a sub-advisory agreement with SVB (or an affiliate).  Transformation Capital has the same operational leader, Kevin Brown, formerly CFO of Leerink Capital, and Transformation Capital expects to continue to derive benefits from its ongoing relationship with Leerink and SVB.

Our Investing Criteria

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    Sector focus on healthcare information technology and novel healthcare services

    We partner with companies providing software and related business services to serve any key healthcare stakeholders, including providers, payors, biopharmaceutical companies, employers, consumers and other vendors. In healthcare services, we invest in companies providing technology-enabled services to the industry stakeholders as well as novel models of direct patient care.

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    $10-30 Million Investment Size

    We typically invest $10-30 million over the life our involvement with a company, though we can speak for much a larger capital amount in concert with many of our Limited Partners who want to make direct investments alongside us. We typically take on minority ownership positions though we will take control positions as well.

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    Commercial Stage

    We invest in revenue-stage businesses with multiple referenceable customers. We believe this is the optimal stage where our industry experience and relationships can help accelerate growth.

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    U.S. Geographic Focus

    We primarily invest in companies with headquarters and senior management teams based in the continental United States.


  1. World Bank Group (2017). Health expenditure, total (% of GDP). World Health Organization Global Health Expenditure database. Washington, DC.
  2. Diamond, D. (2015). 10,000 People Are Now Enrolling In Medicare - Every Day. Forbes Pharma & Healthcare.
  3. MarketsandMarkets (2015). North American Healthcare IT Market by Product (EHR, RIS, PACS, VNA, CPOE, mHealth, Telehealth, Healthcare analytics, Supply Chain Management, Revenue Cycle Management, CRM, Claims Management) by End User (Provider, Payer ) - Forecast to 2020.
  4. Coutsoukis, P. (2007). The World Health Organization's ranking of the world's health systems. Champaign: Information Technology Associates.
  5. Davis, K., Stremikis, K., Squires, D. and Schoen, C. (2014). Mirror, Mirror on the Wall, 2014 Update: How the U.S. Health Care System Compares Internationally. Washington, DC: The Commonwealth Fund.
  6. Yong, P. and Olsen, L. (2010). The Healthcare Imperative: Lowering Costs and Improving Outcomes: Workshop Series Summary. Washington, DC: The National Academies Press, p.2.
  7. Yong, P. and Olsen, L. (2010). The Healthcare Imperative: Lowering Costs and Improving Outcomes: Workshop Series Summary. Washington, DC: The National Academies Press, p.2.
  8. Henry, J., Pylypchuk, Y., Searcy, T. and Patel, V. (2016). Adoption of Electronic Health Record Systems among U.S. Non-Federal Acute Care Hospitals: 2008-2015. ONC Data Brief, no.35. Washington, DC: Office of the National Coordinator for Health Information Technology.
  9. Henry, J., Pylypchuk, Y., Searcy, T. and Patel, V. (2016). Adoption of Electronic Health Record Systems among U.S. Non-Federal Acute Care Hospitals: 2008-2015. ONC Data Brief, no.35. Washington, DC: Office of the National Coordinator for Health Information Technology.
  10. Aetna Inc (2014). 2014 Investor Conference Presentation. December 11, 2014.
  11. Fund I continues to be sponsored and advised by LTP, which is an affiliate of SVB. Prior to forming Transformation Capital, each of Todd Cozzens and Jared Kesselheim were Managing Partners of LTP and were primarily responsible for the investment activities of Fund I. Neither SVB, Leerink Capital nor LTP is affiliated with Transformation Capital.

COVID-19 and our Partner Companies

Transforming healthcare and offering solutions to combat the COVID-19 outbreak