Today I read on Forbes.com (https://www.forbes.com/sites/katiejennings/2023/10/24/why-vc-firm-general-catalyst-wants-to-spend-billions-to-buy-a-hospital-system/?utm_source=newsletter&utm_medium=email&utm_campaign=dailydozen&cdlcid=60a54ad5fe2c195e915216fc§ion=&sh=7a0e58aa18dc)
that a General Catalyst, VC company, plans to spend billions of dollars to buy a health system.
The strategy is not to gut it, load it up with debt, and sell it.
Instead, their plan is to own it for the long term, and use the hospital system as a proving ground for the innovative health startups in their portfolios.
They think this will solve two problems facing digital health startups:
1. It can take months or years to get deals signed with hospitals.
2. Healthcare AI systems needs a lot of medical data to train on.
© 2024 Praveen Puri
