Brant Heise, who leads the joint venture between MemorialCare and Cedars-Sinai, shares insights from his experience.
Built on the backbone of MemorialCare's 20-plus year history of private strategic venture investments, Summation Health Ventures has a wealth of experience in an arena that is becoming more important to leading health systems.
Brant Heise, senior managing director of Summation Health Ventures and managing director of the MemorialCare Innovation Fund, will share insights from his experience during a webinar at 1 p.m. (EDT) on Thursday, August 30. Summation is one of 11 health systems presenting at NEXT Hospital Innovation in Dallas, October 7‒9.
Joint Venture Between Non-Profit Systems
Established in 2014, the Long Beach, California, investment fund was founded as a joint venture between two California non-profit health systems: MemorialCare, which wanted to expand its own decades-old investment arm, and Cedars-Sinai in Los Angeles. Together, these systems have a total of six hospitals with about 2,500 licensed beds, 5,000 affiliated physicians, 22,000 employees, and 250 health care provider locations serving over two million patients annually.
5 Lessons for Success
During "Strategic Innovation Investment: 5 Critical Lessons for Success," Heise will address five points:
- In addition to senior leadership support from within the system, there's a need for operational support and commitment
- You must fully understand risk tolerance from a financial and a commercial perspective within healthcare system
- The best results of strategic investing occur when you are somewhat, but not completely, separated from the long-range strategic planning of the healthcare system
- It's important to have a dedicated, professionally managed, strategic investment team that understands the venture investment world, as well as the world of hospital systems
- An organization doesn't need to be on the bleeding edge of innovation to drive value
Summation Health Ventures invests in privately held startup ventures offering early- to mid-stage information technology solutions or technology-enabled devices and services. It seeks those with proven and experienced management teams, revenue growth potential, and offerings that improve the performance and success of health systems and physician organizations.
The Growing Trend of Innovation Investment
MemorialCare and Cedars-Sinai are among the nation's healthcare systems that are taking innovation head on. Rather than turning to outside resources to transform the industry, these organizations are creating their own incubators, investment companies, and labs to develop and nurture ideas and solutions.
The resulting tools, devices, and processes these engines spawn not only help their system improve healthcare, but often result in for-profit ventures that provide new revenue streams for hospitals.
Learn more about the HealthLeaders NEXT Hospital Innovation event, co-hosted by Baylor Scott & White Health, October 7-9, 2018, in Dallas. The gathering features innovators from 11 of the nation's top health systems, showcasing how they brought applications and tools to market. You'll gain insights into how to transform ideas into reality from health systems that have incubated, funded, and built their own innovation solutions.
Learn from Other Health Systems
Explore how other healthcare systems approach innovation:
Mandy Roth is the innovations editor at HealthLeaders.