How 8 health systems are investing their venture capital dollars

Health systems across the country have launched venture capital arms to invest in a variety of health IT, services, medical devices and solutions.

In some cases, the VC arms focus on technology used throughout the system while others support startup companies with the potential to disrupt broader healthcare delivery. Here are eight health systems with venture capital arms and where they focus their investments.

To recommend a health system or venture capital fund for a future list, contact Laura Dyrda at ldyrda@beckershealthcare.com.

Funds are listed in alphabetical order.

Ascension Ventures manages more than $800 million in capital. It has partnered with 13 nonprofit health systems across the U.S., including St. Louis-based Ascension, and shares its portfolio companies across its partnership network. Ascension Ventures' portfolio companies include Apama Medical, Ingenious Med, ISTO Technologies, Olive, VisitPay and United Surgical Partners International.

Cleveland Clinic has launched more than 80 startup companies since 2000 and in 2017, Cleveland Clinic Ventures formed to invest in emerging healthcare companies that would result in financial returns for the health system. CCV supports the health system's physician innovators to develop, finance and grow spinout companies. It also invests in companies that have strategic value for Cleveland Clinic in population health management, patient experience, precision medicine and the digital transformation of care delivery. Portfolio companies include Custom Orthopaedic Solutions, Explorys and ImageIQ.

Intermountain Ventures Fund is Salt Lake City-based Intermountain Healthcare's strategic investment vehicle that targets innovative companies with high return, high growth opportunities. Intermountain Ventures typically invests $3 million to $5 million over the life of a portfolio company, with a minimum investment of $1 million. It focuses on health IT companies and its current portfolio includes Zebra Medical Vision, Syapse and Redox.

Kaiser Permanente Ventures has invested in and supported more than 65 companies over the past 20-plus years. In partnership with Oakland, Calif.-based Kaiser Permanente, KPV targets health IT, digital health, healthcare services, medical devices, diagnostics and precision medicine companies. Its portfolio includes Ginger, Genome Medical, Leiters and Health Catalyst.

OSF HealthCare in Peoria, Ill., launched a $75 million venture capital arm in 2016, and a second $75 million fund in July. OSF Ventures invests in technology to improve outcomes or reduce costs and collaborates with technology to deploy across its 13-hospital health system. OSF Ventures has invested in 15 companies directly, including Regroup, a Chicago-based telemedicine solutions company.

Providence Ventures invests in companies that improve quality and lower costs at Providence St. Joseph Health and beyond. It initially launched in 2014 and manages a $300 million venture capital fund on behalf of the Renton, Wash.-based health system, across two funds. Providence Ventures targets health IT, medical devices and diagnostics and health services companies, and current portfolio companies include Xealth, Trilliant Health and Kyruss. 

TMC Venture Fund, funded through TMC Corporation, is a $25 million fund supporting healthcare innovation in Houston. Affiliated with Houston-based Texas Medical Center, the fund's portfolio companies include Medable, Noninvasix and LumaHealth. The fund focuses on early-stage companies and makes investments on a quarterly basis.

UnityPoint Health in West Des Moines, Iowa, founded UnityPoint Health Ventures in 2019 to support digital health, medical device, health IT and healthcare services startups. UnityPoint Ventures' portfolio currently includes Epharmix, RxRevu and Health Catalyst. The $100 million fund supports the 32-hospital health system's innovation center, which encourages employees to make process improvements within the health system.

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