Community Health Systems Inc., LifePoint Hospitals and Vanguard Health Systems and two other nonprofit hospital systems each have committed to invest at least $10 million in Heritage Healthcare Innovation Fund LP.
Their investments in the fund created by the Nashville-based investment and advisory firm Heritage Group LLC comes as health care reform and other regulatory changes have created a need for more innovations in health care. Hospital systems, meanwhile, face more pressures to find newer ways to reduce costs.
Theres pressure to slow the growth in health care inflation and as you have pressure to lower the costs of health care, there will be opportunities for investments in companies that can lower costs and improve quality, said Frank Morgan, an analyst at RBC Capital Markets LLC in Brentwood.
It says a lot about the Nashville health care community that different companies can come together and invest in innovative ideas and opportunities.
The Heritage Healthcare fund plans to make investments of up to $10 million in early-and-growth stage health care businesses in sectors such as health care information technology and companies working to improve processes involved in delivery of health care services.Comments | Share your thoughts »Related StoriesMore Business headlinesOlder workers find job search takes a long timeNashville retailer hopes to cash in as more join 'green' bandwagon3 Nashville-area hospital chains invest in health-care delivery fundSEC gives investors a say on execs' paySelected for you by a sponsor:ADVERTISEMENT
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