Providence Health launches $150 million tech venture fund

Providence Health & Services, the fifth-largest not-for-profit system in the country by revenue, has started a venture capital fund to develop innovative, consumer-driven technology. A former Amazon.com executive will run the new undertaking.

The Renton, Wash.-based health system said Providence Ventures will invest $150 million into various startup companies during the next five to seven years. The investments will go toward projects that focus on online primary-care services, data analytics, care coordination and patient engagement, chronic disease management, clinician experience and wellness services.

Aaron Martin will be overseeing Providence Ventures. Martin joined Providence earlier this year from Amazon, where he led efforts to move physical books into the e-book reader space, which includes Amazon's Kindle.

Providence's venture won't just be buying startups; it will collaborate with them. Providence created a digital innovation group that will work with promising companies to help them build technological breakthroughs.

“Consumers are now comparison-shopping, reading reviews and purchasing healthcare online,” Martin said in a release. “This trend will only accelerate as it has in every other industry. Consumers will demand more value, quality and convenience from the healthcare provider they choose.”

Providence is not alone in starting a venture capital arm. Several other health systems already have done the same—including Ascension Health in St. Louis, Kaiser Permanente in Oakland, Calif., and Partners HealthCare in Boston.

Follow Bob Herman on Twitter: @MHbherman