STAT+: Hospitals are dialing back on venture capital investing
Once seen as a way to innovate, many hospitals are now dialing back on venture capital investing in an era of tight margins. Some say they never quite got it…
Hospitals once dove headfirst into venture capital with splashy headlines and attention-grabbing numbers. Now, in an era of flattened margins and exceedingly uncertain returns, many health systems are quietly pulling back.
NewYork-Presbyterian’s venture firm, once managing roughly $40 million in assets, was essentially dissolved, two former employees said, with leaders punting it from the system’s strategy division to innovation, then from innovation to the investment office — a spokesperson described it as being “integrated” into the broader strategy. PitchBook data show no investments after 2020.
Advocate Health Enterprises, meanwhile, the venture firm of a 67-hospital system based in Charlotte, N.C., has lost at least six employees within the past year, including its president, from a staff that once included about a dozen people.
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