Large health systems across the country are investing millions in startup companies whose products could revolutionize healthcare delivery.
Healthcare companies and organizations are watching with interest as health systems launch venture capital funds and invest in new technologies. Most recently, Kaiser Permanente Ventures, the 20-year-old venture capital arm of Kaiser Permanente, joined the $160 million funding round for Freenome, a blood test startup focused on early cancer detection. Other investors in the round included the American Cancer Society's BrightEdge Ventures, Alphabet's GV and Verily Life Sciences. The company's artificial intelligence multiomics platform analyzes blood samples for early stage cancer biomarkers.
In June, Charlotte, N.C.-based Atrium Health, Cleveland Clinic and Long Beach, Calif.-based MemorialCare Innovation Fund invested $3 million in Xealth to complete its $14 million round of Series A financing. The Seattle-based startup, a spinoff from Providence St. Joseph Health, also received funding from UPMC, Froedtert and the Medical College of Wisconsin and Providence Ventures.
Xealth's platform focuses on digital health application, allowing clinicians to prescribe and monitor digital content within the EHR system and then share information directly with patients. The technology also aims to help healthcare organizations find and onboard new digital care vendors, with applications for providers, payers, pharma, devices and supply chain.
In the same month, Grand Rapids, Mich.-based Spectrum Health Ventures invested $10.3 million in Series B funding for Palo Alto, Calif.-based startup Vynca, according to a report from the Grand Rapids Business Journal. The company develops advanced planning technology designed for patients to customize end-of-life care. Spectrum Health Ventures' clinical director Scott Lancaster, MD, joined the company's board of directors after the investment. Dr. Lancaster said the fund decided to invest in Vyne because it could help improve quality of care and patient engagement while reducing costs. Vynca is already partnering with 80 hospitals as well as health plans and ACOs.
West Des Moines, Iowa-based UnityPoint Health has also jumped into venture capital investments. The health system launched its $100 million venture fund, UnityPoint Health Ventures, in May and then participated in a $15.9 million Series A funding round for RxRevu in June, according to Finsmes. Aurora, Colo.-based UCHealth led the funding round, which also included the University of Virginia LVG Venture Fund, Presbyterian Healthcare Services, Froedtert Health and Children's Hospital Colorado. RxRevenue offers a platform and decision support tools for healthcare professionals to make more informed prescription decisions.
In February, four health systems invested $3 million in Narrative Dx, according to MedCity News. The company uses artificial intelligence and natural language processing to help healthcare providers analyze patient feedback and provide insights for a better patient experience. The company's Series A funding round was led by Christiana Care Health System, Texas Medical Center and Summation Health Ventures, a partnership between Cedars-Sinai and MemorialCare.