Hospital Venture Funds

The May 22 Daily Journal lead story by Dominic Fracassa covers the growing number of hospitals forming venture capital funds. Firm managing partner Harry Nelson is quoted on the trend: “We’re living in a time when there’s a receptivity to all kinds of new [healthcare] ventures.  . . . The way the system is changing is driving interest in new consumer-oriented kinds of services and goods.” The trend of hospital venture funds reflects the focus on finding new sources of revenue to make up for the decline in revenues being experienced by hospitals nationwide. Nelson Hardiman work with hospitals and other healthcare providers developing new services, products, and strategies, with particular expertise in telehealth ventures and consumer-oriented health services and products. “Healthcare reform and pressure from payors is suppressing hospital utilization and shrinking reimbursement for traditional services, driving the need to innovate.” commented Nelson. “Hospitals that are going to survive and thrive need to be taking active steps now to adjust.”