As health systems face numerous financial challenges coming out of the pandemic, some are relying on an innovative source of revenue to bridge the gaps: internal venture capital (VC) arms.
At least 23 health systems operate VC arms, according to a tracker from Becker’s Health IT, with the primary goal of generating additional revenue streams, Richard Gundling, SVP of professional practice for the Healthcare Financial Management Association, told Healthcare Brew.
“Certainly coming through the pandemic with lots of increased costs, both for workforce [and] supplies […] there’s going to be a lot of constraints on inpatient care in some of the traditional areas of hospitals and health systems in their revenue streams,” Gundling said. “[VC] is another opportunity to be able to have growth.”
Keep reading here.—MA
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