Issue link: https://beckershealthcare.uberflip.com/i/1169964
48 POPULATION HEALTH 48 CEO/STRATEGY How 8 health systems are investing their venture capital dollars By Laura Dyrda H ealth systems across the country have launched venture capital arms to in- vest in a variety of health IT, services, medical devices and solutions. In some cases, the VC arms focus on technol- ogy 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. Funds are listed in alphabetical order. 1. Ascension Ventures manages more than $800 million in capital. It has partnered with 13 nonprofit health systems across the U.S., in- cluding St. Louis-based Ascension, and shares its portfolio companies across its partnership network. Ascension Ventures' portfolio com- panies include Apama Medical, Ingenious Med, ISTO Technologies, Olive, VisitPay and United Surgical Partners International. 2. 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 sys- tem. CCV supports the health system's physi- cian innovators to develop, finance and grow spinout companies. It also invests in compa- nies 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 Ortho- paedic Solutions, Explorys and ImageIQ. 3. Intermountain Ventures Fund is Salt Lake City-based Intermountain Healthcare's strate- gic investment vehicle that targets innovative companies with high-return, high-growth opportunities. Intermountain Ventures typi- cally invests $3 million to $5 million over the life of a portfolio company, with a minimum investment of $1 million. Its current port- folio includes Zebra Medical Vision, Syapse and Redox. 4. 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 Perma- nente, KPV targets health IT, digital health, healthcare services, medical devices, diag- nostics and precision medicine companies. Its portfolio includes Ginger, Genome Med- ical, Leiters and Health Catalyst. 5. 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. 6. Providence Ventures invests in companies that improve quality and lower costs at Prov- idence St. Joseph Health and beyond. It ini- tially launched in 2014 and manages a $300 million venture capital fund on behalf of the Renton, Wash.-based health system. Prov- idence Ventures targets health IT, medical devices and diagnostics and health services companies, and current portfolio companies include Xealth, Trilliant Health and Kyruss. 7. 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 Med- able, Noninvasix and LumaHealth. e fund focuses on early-stage companies and makes investments on a quarterly basis. 8. 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. e $100 million fund also supports the 32-hospital health system's in- novation center, which encourages employ- ees to make process improvements within the health system. n Medical group CEO salaries grew nearly 14% in 4 years By Emily Rappleye T he Medical Group Management Association found compensation is in- creasing for medical practice leaders, with the biggest increases among CEOs and executive directors. MGMA's "DataDive Management and Staff Compensation" report in- cludes data on more than 162,000 management and staff positions across about 2,600 groups representing hospital- or health system-owned and physician-owned groups. The data shows medical group CEOs made between $202,407 and $340,289 on average in 2018, based on organization size. CEOs of larger groups, with 26 or more full-time-equivalent physicians, brought home bigger compensa- tion packages, but experienced slightly slower growth in compensation from 2014 to 2018 compared to CEOs of smaller groups. Here is a breakdown of compensation growth for medical group leaders from 2014 to 2018, according to MGMA: • CEOs/executive directors of groups with 26 or more FTE physicians — 11.83 percent increase • CEOs/executive directors of groups with 25 or fewer FTE physicians — 13.75 percent increase • Executive management positions — 4.49 percent increase • Senior management positions — 11.48 percent increase • General management positions — 8.02 percent increase n