Spurring innovation has become a cornerstone of the AHA’s efforts to support hospitals and health systems as they continue transforming care delivery. And now the AHA has gone a step further by working with its members to launch the AHA Innovation Development Fund LP, or “AHA Fund,” a $50 million venture capital fund designed to help provider organizations continue these efforts.
The AHA Fund, launched late last year, is managed by Concord Health Partners LLC, a health care-focused investment firm, with the AHA as the anchor limited-partner investor. The AHA Fund invests in early-stage health care companies that provide products, services and solutions that help hospitals and health systems transform care delivery, spur innovation among members, connect hospitals and entrepreneurs and drive results.
“All across the country, hospitals and health systems are innovating and transforming to meet the changing needs of their patients and communities,” says AHA President and CEO Rick Pollack.
“The AHA Fund will allow them to invest in the solutions that hospitals and health systems truly need. By finding the right business partners, the AHA Fund can help fund, guide and scale solutions offering the greatest transformational value for hospitals and health systems.”
James Olsen, founder and managing partner of Concord, says: “Concord is focused on identifying and supporting health care companies with solutions that address affordability, quality and access to care. The AHA Fund aligns interests and delivers strategic value to both health systems and portfolio companies.”
Unlike funds whose only objective is financial return, the AHA Fund’s goals also include:
- Providing a source of capital, expertise and mentoring to advance — at an early stage — promising health care technologies and solutions that might not otherwise receive funding or nurturing.
- Creating venture opportunities for members and allied hospital associations, many of whom might not find or create such opportunities on their own.
- Allowing hospitals and health systems to enter the venture fund sector and share venture funding best practices.
- Enriching the health care field by sharing learnings and solutions.
Earlier this year, Concord on behalf of the AHA Fund, invested in Pieces Technologies, a health care artificial intelligence and technology company that connects health systems and the community to address social determinants of health. The promising startup company, which was founded at the Parkland Center for Clinical Innovation, closed a $25.7 million Series B funding round led by Concord Health Partners. Existing investors Children’s Health of Dallas and OSF HealthCare System, also participated in the round. Pieces Technologies also was a 2019 finalist at the AHA’s inaugural Startup Competition hosted at the association’s Leadership Summit in San Diego.