3 Takeaways from General Catalyst鈥檚 Health Transformation Spinoff

3 Takeaways from General Catalyst鈥檚 Health Transformation Spinoff. A man sits on top of a tower with the General Catalyst log on it and looks through binoculars into the future.

, the huge venture capital firm that has been concentrating on how to help hospitals and health systems transform care delivery, is putting added muscle behind this effort. It is spinning off to be led by former Intermountain Health CEO Marc Harrison, M.D.

Harrison and General Catalyst CEO Hemant Teneja wrote a about their self-described plan to create an 鈥淎mazon ecosystem of health care鈥 to help health systems achieve a more affordable, accessible and proactive care system.

As part of its goals, General Catalyst will look to acquire a health system within HATCo鈥檚 first year as a national blueprint to transform the field and to put the system on a platform where digital systems can scale across the enterprise without operating in silos.

HATCo also will work with GC鈥檚 20-plus health system partners to help them on their transformation journey and will help to catalyze the health assurance ecosystem by building an interoperability model with tech-driven solutions from a subset of health care portfolio companies.

HATCo will operate as a for-profit, Harrison said, adding that, 鈥淲e are unaware of any industry that is able to truly transform without the impetus of capitalism behind it.鈥

In their blog, Teneja and Harrison emphasize their focus on stakeholder alignment and that transforming health systems will require a 鈥渄ecades-long time horizon.鈥 In its work, GC will emphasize this latter point to investors.

3 Takeaways from the Launch of HATCo

1 | The company will focus on platform innovation.

It sees the current private equity model in health care as having a maniacal focus on removing costs from the system. HATCo鈥檚 plan will involve giving health systems the chance to capitalize on new revenue streams, which should in turn enable them to invest more in technologies to service their communities.

2 | Radical collaboration will be the rule.

HATCo is committed to creating an open architecture platform and working closely with its health system partners by sharing best practices, new technologies and a transformation playbook.

3 | Value-based care is baked into the plan.

HATCo intends to work with the ecosystem to demonstrate that a model that is better for patients also can be good for business.

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