Health systems are progressively creating venture funds for digital health innovation, as it allows them to find solutions for improving quality of care, lowering healthcare costs, managing healthcare burnout and optimizing revenue, eMarketer reported Jan. 13.
OSF Ventures, part of Peoria, Ill.-based OSF Healthcare, recently launched a $100 million venture fund, its third and largest. The money will be used for digital health tools and tech-enabled healthcare services. It will focus on tools for social determinants of health, digital therapeutics and precision medicine, among other things, according to eMarketer.
Ascension Ventures, part of St. Louis-based Ascension, has more than $1 billion in its venture fund. The fund includes companies such as Olive, Vivify, VisitPay and Phreesia, which have national footprints, according to eMarketer.
Other notable health system venture funds are Oakland, Calif.-based Kaiser Permanente Ventures, Salt Lake City-based Intermountain Ventures and Rochester, Minn.-based Mayo Clinic Ventures, which have raised millions, according to eMarketer.
"These health system venture funds are pouring massive amounts of money into digital health moonshots — and while not all of them will take off, the ones that do could bring in more revenue via commercialization," the article said.