AHA, Concord Health Partners start $50M innovation fund
The American Hospital Association and Concord Health Partners have launched a $50 million venture capital fund to invest in early-stage healthcare companies.
The AHA Innovation Development Fund, sponsored and managed by investment firm Concord Health Partners, is intended to support entrepreneurs looking to help hospitals and healthcare organizations transform care delivery through cutting-edge technology solutions.
“All across the country, hospitals and health systems are innovating and transforming to meet the changing needs of their patients and their communities,” says Rick Pollack, president and CEO of AHA, which is the fund’s anchor limited partner investor. “The AHA Fund will allow them to invest in the solutions that hospitals and health systems truly need. By finding the right business partners, the AHA Fund can help fund, guide and scale solutions offering the greatest transformational value for hospitals and health systems.”
While the goal of other VC funds is solely focused on financial return, AHA contends that one of the objectives of its fund is “providing a source of capital to advance—at an early stage—promising healthcare technologies and solutions that might not otherwise receive funding.”
In addition, the AHA Innovation Development Fund wants to create “venture opportunities for members and allied hospital associations, many of whom might not find or create such opportunities on their own.”
“Concord is focused on identifying and supporting healthcare companies with solutions that address affordability, quality and access to care,” says James Olsen, Concord’s founder and managing partner. “The AHA Fund aligns interests and delivers strategic value to both health systems and portfolio companies. We are excited to be part of this collaborative effort with the AHA to advance and accelerate innovation in healthcare.”
Last year, the AHA launched a Center for Health Innovation to help hospitals and healthcare systems build the capabilities they need at-scale to succeed in value-based care.
AHA’s center is meant to test new payment and delivery models, utilize information technology and data in novel ways, as well as develop the leadership skills and competencies necessary to transform healthcare by identifying breakthrough ideas and opportunities and putting them into practice.