Phoenix-based Banner Health and Cleveland Clinic are investing in a startup that uses data analytics to stratify and predict financial and other risks for health systems.
Here are seven things to know:
1. Banner Health led the $10 million series A financing round Dec. 12 for risk management startup 1m.
2. The funding also included Cleveland Clinic, Palo Alto, Calif.-based Stanford Health Care, Bend, Ore.-based St. Charles Health System, and Urbana, Ill.-based Carle Foundation.
3. The health systems are already using the platform, which maps out risk based on measures such as government regulations, cybersecurity, workforce issues, revenue cycle challenges, and competition from traditional and nontraditional players alike. Health systems can, say, plug in policy proposals from the incoming presidential administration and see how each would affect the bottom line.
4. The output allows the organizations to adjust their strategies accordingly. "A tool like this allows you to really focus on categories of risk that have the most potential impact to your future going forward," Scott Nordlund, executive vice president and chief strategy and growth officer of Banner Health, told Becker's. "Take cyber, for instance. It's a massive risk to us. So now we're going to do scenario planning around how we make sure we invest appropriately to protect ourselves. A lot of that in the past was more of a gut feel."
5. Data platforms like 1m are changing the way health system C-suite leaders do business. "There's no question that the emergence of tech-enabled solutions and the power of AI and RPA and robotic processing present mitigation opportunities and mitigation strategies," Dennis Laraway, executive vice president and CFO of Cleveland Clinic, told Becker's. "It's an effort to bend the cost curve, but it's also an effort to be far more efficient, far more agile in the operation, and if done right, the technology and the repetitiveness of the technology can actually be more accurate and effective than the risk of human error."
6. Banner Health and Cleveland Clinic executives joined the 1m board.
7. The company was founded in 2022 by two former Goldman Sachs healthcare investment bankers.