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Is Venture Investing a Good Fit for Your Health System? Considerations for Provider Funds

Healthbox venture investing

This is part one of a two part series by our partner Healthbox on venture investing.

Recently, many health systems have invested in digital health companies. These investments have been made through multiple vehicles, including but not limited to balance sheet investments, in-house venture programs, and both single- and multi-LP venture funds. This has led to an increase in the number of digital health startups receiving funding. According to Rock Health, nearly $6 billion was invested in almost 600 digital health deals in 2017. They also report continued growth across the number of active investors, with nearly 20% of all 2017 digital health investors being new to the space. Health systems in particular have become more active in the space: according to Accenture, there are now 60 hospital-sponsored or corporate venture funds.

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