Investing in the future of health care

It’s been about two years since the launch of OSF Ventures, the corporate venture arm of OSF HealthCare. Since that time, we have made eight investments in medical devices, therapeutics, health services and health IT technologies.

Our health IT portfolio includes precision medicine technology as well as data management and predictive analytics solutions. We are also excited to be a limited partner investor in Ascension Ventures Fund IV.

Why Venture Investing at OSF?

Investing in the Future of Health CareWe are often asked why a health care system like OSF would choose to get into the venture investment business. It’s really about financially supporting new technologies that can improve the health outcomes of those we serve.

It’s about engaging with health care entrepreneurs to provide them meaningful input from the perspective of a health care provider as they bring their product or service to market. It’s about assisting them with resolving the inevitable challenges that disruptive technologies encounter as they migrate from a Research & Development phase and attempt to get traction with customers. This is all done with the spirit of supporting new ways to improve the outcomes of those we serve and the experiences they encounter in their health journey.

We believe we can bring real value to these entrepreneurs as they discover new and exciting ways to assist us in serving patients. Our venture focus is on financially supporting companies that see value in collaborating with OSF clinicians and other professionals. This can include informal mentoring, pilot testing of new technologies in a health care environment and participation in formal clinical trials.

Another focus of our venture program is in identifying new technologies that can reduce costs to health care systems. As has been said by many, the current trajectory of health care costs is simply not sustainable. We believe that in the migration to value-based care, it is imperative to find ways to reduce costs to health care systems and other providers. In our venture diligence process, we are very careful to evaluate not only the ability of the new technology to improve care but also the financial impact to providers. Can it reduce costs compared with the way things are done today?

Recent Investments

We are excited to financially support and partner with InsightRx, a company founded in San Francisco that has developed software to individualize treatment based on a patient’s underlying biological and pharmacological characteristics.

This is particularly important when administering a drug with a narrow therapeutic index where adjustments to the dosage are difficult but very important to achieve the desired outcomes. According to Jerry Storm, Senior Vice President of Pharmacy Services at OSF, “InsightRx will allow pharmacists to efficiently and safely dose patients prescribed high-risk drugs, leading to shortened hospitalizations stays and improved outcomes.”

The Company’s initial work has mostly focused on chemotherapy drugs for children and certain complex antibiotics. OSF will be partnering with InsightRx to expand and improve their offerings.

Our most recent investment is in Regroup Therapy, a Chicago-based provider of behavioral health services using video conferencing technology. According to Cheryl Crowe, Director of Behavioral Health Services for OSF, “Our collaboration with Regroup Therapy will allow our patients significantly greater and timelier access to the professional care they need.”

The investment from OSF Ventures and others has provided the company the capital necessary to expand its offerings and attract new customers.

What’s Next for OSF Ventures

We intend to continue our work of identifying new technologies and services that can improve the outcomes of those we serve and the experiences they encounter in seeking care from OSF.

If you’re interested in learning more about OSF Ventures, please visit www.osfventures.org  Stay tuned for future announcements about new investments by OSF Ventures in companies with new and exciting technologies and how we intend to partner with them to bring value to our patients and their families!

Last Updated: February 11, 2022

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About Author: Stan Lynall

Stan Lynall, CPA, is the Vice President of Ventures Investments for OSF Ventures, the corporate venture program of OSF HealthCare. In this role, Stan identifies new technology that can positively impact those served by the Ministry. He also manages the diligence and venture investment process and maintains relations with the system’s portfolio investments and syndicate co-investors.

Before that, Stan founded and was the Managing Member of LMA Consulting, LLC, providing merger and acquisition services to private businesses. He also co-founded Central Illinois Angels, a nonprofit entity that provides early-stage investment opportunities for accredited angel investors. Stan is an honors graduate of the University of Illinois where he earned a Bachelor of Science degree in Accountancy. He is a Certified Public Accountant and is also a 2005 graduate of RSM’s Business Advisor Program conducted by the University of Chicago-Graduate School of Business.

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Categories: Innovation