Trends in Hospitals and Health Systems as Investors in Innovation

The modern world has seen the healthcare system evolve and join forces with complementary disciplines in an effort to provide superior solutions and services. A prime example is the relationship between private equity and healthcare, with companies in these sectors identifying significant growth in provider-driven joint ventures.

Tackling the evolution of such partnerships on this episode of Across the Table are McGuireWoods partners and hosts Amber Walsh and Holly Buckley, joined by Scott Becker, a partner in the McGuireWoods Healthcare Group and Chief Content Officer of Becker’s Healthcare.

The group kicks off the discussion with just one question: “tell us some of the more interesting things that you’ve seen health systems doing relative to their venture arms and their kind of partnerships with private equity.” (1:09) Scott explains that this partnership evolution must be analyzed based on the two types of ventures that exist: provider-driven joint ventures and hospital venture-related operations in the technology space. The group then examines these two ventures, providing brief information about each and discussing the significant changes in the space over the last 10-15 years.

·     Provider-driven joint ventures (01:56)

·     Hospital venture-related operations (02:51)

·     Technology-driven solutions innovation funds are investing in (05:29)

·     Origin of the talent and ideas in these partnerships, does it come from the health

·     system or where? (06:40)

·     Has COVID increased or damped interest in these venture arms? (08:35)

·     Private equity funds vs. health system, which should we trust? (10:44)

·     Commercialization, the goal of the venture funds (14:55)

·     The future of these partnerships (16:39)

We appreciate you joining us on this episode of Across the Table. To learn more about today’s discussion or to contact us, please visit our website at mcguirewoods.com.

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