Understanding the Keys to Successful Innovation Investing

Earlier this month, Houston-based Memorial Hermann Health System and Iowa-based UnityPoint Health invested a combined $5 million in clinical data startup Carta Healthcare.

In November, Mass General Brigham and the CU Healthcare Innovation Fund participated in a Series B funding round for Carta Healthcare, which offers data abstraction and analytics and develops other solutions for health care providers.

The investment amounts and the companies involved aren’t particularly noteworthy. Much larger investments are made all the time in dozens if not hundreds of digital health care startups, even in the relatively cool market we see now, which is weighed down by a tepid economy and high interest rates.

Moving from Tech Adopters to Investors

These investments illustrate what has been happening in the field over the past decade as hospitals and health systems experience explosive innovation, particularly in digital technologies. Many provider organizations have become not only adopters of these technologies but also investors.

A new report, “The Rise of Innovation Investing Among Health Care Organizations,” explores the channels organizations are using to invest in innovation, the roles of professional investors and what it takes to achieve success.

This is the first of a four-part series from Concord Health Partners and the AHA Center for Health Innovation. Future reports will examine:

• A private-equity primer for health care providers.
• Ingredients for success in health care investing.
• Growth-equity investing in health care.

Download the Report >