A study of more than 1,400 health system-backed initiatives showed three primary areas where organizations can generate revenue through nontraditional strategies.
For the study — conducted by Boston-based Partners HealthCare and New York City-based private equity firm Fitzroy Health — C-suite executives, board members, venture capital executives and others at 74 U.S. health systems and academic medical centers were interviewed. Researchers identified more than 1,400 initiatives that health systems have pursued to generate new revenue and placed them in 10 categories.
Researchers ended up with three primary levers of value creation that can provide sustainable revenue. They are:
- Bringing care model innovations to market, such as Aurora, Colo.-based UCHealth’s partnership with RxRevu, a digital health company that offers providers medication information within the EHR
- Transforming cost centers into profit centers, such as Navicent Health’s Flex Health, a workforce management company spinout
- Generating royalties from drugs, devices and diagnostics, such as Children’s Hospital of Philadelphia investing in Spark Therapeutics
Access the full study here.
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