General Catalyst adds 10 new healthcare system partners, including UHS

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Diving Brief:

  • General Catalyst added 10 new health system partners for health technology development and testing, including leading hospital operator Universal Health Services, bringing the venture capital firm’s total list of hospital partners to 15.
  • In partnerships, General Catalyst connects health systems with health technology startups, allowing hospitals to try and develop new technologies and scale existing products in exchange for startups testing their products in the field.
  • General Catalyst’s healthcare system partnerships now encompass 10% of the US population, according to the VC company. General Catalyst told Healthcare Dive that it may add a few more partners before the end of the year, but will stick with this cohort until it has tangible results to expand to. other health systems.

Overview of the dive:

General Catalyst says its goal with partnerships is to work directly with healthcare systems and startups to find solutions to the biggest problems in care delivery, administration and more. The new collaborations come as hospitals continue to face significant headwinds, such as high staffing costs and volatile admissions.

General Catalyst’s new additions cover a wide variety of geographies and patient mixes, which should help it address a range of healthcare needs and apply this learning broadly, the venture capital firm said in his statement.

General Catalyst added UHS, MetroHealth, UC Davis, UCI Health, Health First, Banner Health, Hackensack, The Medical University of South Carolina, OhioHealth, and Cincinnati Children’s Hospital Medical Center.

General Catalyst announced its first partnership with HCA Healthcare, the largest for-profit hospital operator in the United States, in August 2021. Over the past year, it has added Philadelphia-based Jefferson Health, Philadelphia-based Intermountain Health Salt Lake City, and Pennsylvania-based WellSpan. Health, as well as its first international partnership with Guy’s and St Thomas’ NHS Foundation Trust, the UK’s largest teaching hospital system

No money changes hands in partnerships.

In the release, UHS CEO Marc Miller said UHS is “particularly focused on innovation that has the potential to improve operations, care delivery, and patient experience across settings. behavioral health and acute care”. The Pennsylvania-based operator has been looking for areas in which to form joint ventures, particularly around behavioral health, to increase efficiency as expenses have soared.

In July, just over a year after closing its first $600 million healthcare fund, General Catalyst raised another $670 million for its healthcare fund. The venture capital firm’s rise comes as digital health funding cools after pandemic highs. The slowdown has contributed to a series of layoffs at digital health companies this year.

General Catalyst’s healthcare investments include value-based provider Cityblock Health, automation company Olive, musculoskeletal healthcare provider Sword Health, insurtech Oscar Health and chronic disease manager Livongo.

In addition to growing its hospital partners, it also has a history of recruiting industry talent: Marc Harrison, former CEO of Intermountain, left the system this fall to lead one of the healthcare platform businesses from General Catalyst.

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