Hospital systems invest in innovation fund

Three for-profit chains and two not-for-profit health systems invested as limited partners in a strategic-innovation fund that will invest in companies trying to improve the delivery of healthcare.

The five limited-partner investors in the Heritage Healthcare Innovation Fund are affiliates of: Community Health Systems, Brentwood, Tenn.; Iowa Health System, Des Moines; LifePoint Hospitals, Brentwood, Tenn.; Trinity Health, Novi, Mich.; and Vanguard Health Systems, Nashville, according to a news release from the companies.

Each has committed to investing at least $10 million in the fund, said David Jarrard, an external spokesman for Heritage Group, the manager of the fund. The size of the fund is not being released and Heritage is in discussions for additional healthcare providers to invest in the fund, Jarrard said.

One of the fund’s goals is to invest in and mentor innovative businesses that deliver improved quality, service and efficiency for healthcare delivery systems, according to the news release. “Now more than ever, hospitals must create enduring solutions to the challenges they face,” Bill Leaver, president and CEO of Iowa Health, said in reference to the industry undergoing reform, in the release. “It is both a challenge and an opportunity. We believe the innovation fund will unlock these solutions and accelerate their adoption across the industry,” Leaver said.