Three leading hospital companies and two major hospital systems — together representing more than 400 hospitals throughout the United States — have invested in the Heritage Healthcare Innovation Fund, a strategic venture fund focused on investments in businesses that improve the delivery of healthcare services, according to a Heritage Group news release.
For-profit Community Health Systems, LifePoint Hospitals and Vanguard Health Systems and non-profit Iowa Health System and Novi, Mich.-based Trinity Health are each limited partners in the fund, which will be managed by Heritage Group LLC.
"Hospitals must be the leaders and incubators of healthcare innovation in this era of fundamental change," Wayne T. Smith, chairman, president and CEO of Community Health Systems, said in the release. "This fund allows our industry to champion real and practical innovation that will improve the quality of care, service and efficiency."
According to the release, the Heritage Healthcare Innovation Fund will:
• Seek, fund and mentor innovative businesses that deliver improved quality, service and efficiency for healthcare delivery systems;
• Develop "purpose-built" companies specifically focused on solving problems that are identified by hospitals and which are broadly applicable to healthcare delivery systems, particularly issues borne of healthcare reform;
• Allow healthcare delivery systems the opportunity to benefit from the commercialization of innovative solutions they have developed internally through the development and launch of new companies; and
• Make individual investments of up to $10 million in early- and growth-stage health care businesses.
Read the Heritage Group release on the Heritage Healthcare Innovation Fund.
For-profit Community Health Systems, LifePoint Hospitals and Vanguard Health Systems and non-profit Iowa Health System and Novi, Mich.-based Trinity Health are each limited partners in the fund, which will be managed by Heritage Group LLC.
"Hospitals must be the leaders and incubators of healthcare innovation in this era of fundamental change," Wayne T. Smith, chairman, president and CEO of Community Health Systems, said in the release. "This fund allows our industry to champion real and practical innovation that will improve the quality of care, service and efficiency."
According to the release, the Heritage Healthcare Innovation Fund will:
• Seek, fund and mentor innovative businesses that deliver improved quality, service and efficiency for healthcare delivery systems;
• Develop "purpose-built" companies specifically focused on solving problems that are identified by hospitals and which are broadly applicable to healthcare delivery systems, particularly issues borne of healthcare reform;
• Allow healthcare delivery systems the opportunity to benefit from the commercialization of innovative solutions they have developed internally through the development and launch of new companies; and
• Make individual investments of up to $10 million in early- and growth-stage health care businesses.
Read the Heritage Group release on the Heritage Healthcare Innovation Fund.