Providence St. Joseph Health announces new $150M healthcare fund

Aaron Martin, managing general partner of Providence Ventures. (Providence St. Joseph)

Seattle-based Providence Ventures, the venture capital arm of Providence St. Joseph Health, raised a $150 million healthcare venture capital and growth equity fund to invest in healthcare and technology partnerships aimed at changing how care is delivered to consumers.

The funding was announced at the 37th Annual JP Morgan Healthcare Conference underway in San Francisco. It is their second such fund and will target early and growth-stage health care companies that specialize in healthcare information technology, technology-enabled services, medical devices, and healthcare services.

Providence Ventures II will invest $5 to $15 million per portfolio company with flexibility to lead investment rounds or participate as a partner.

Conference

2019 Drug Pricing and Reimbursement Stakeholder Summit

Given federal and state pricing requirements arising, press releases from industry leading pharma companies, and the new Drug Transparency Act, it is important to stay ahead of news headlines and anticipated requirements in order to hit company profit targets, maintain value to patients and promote strong, multi-beneficial relationships with manufacturers, providers, payers, and all other stakeholders within the pricing landscape. This conference will provide a platform to encourage a dialogue among such stakeholders in the pricing and reimbursement space so that they can receive a current state of the union regarding regulatory changes while providing actionable insights in anticipation of the future.

RELATED: Former CMS administrator Andy Slavitt's venture firm closes $115M fund

Providence St. Joseph a not-for-profit Catholic healthcare system operating multiple hospitals across five states. It is headquartered in Washington.

Started in 2014, the venture arm managers an aggregate $300 million and has invested in fifteen portfolio companies and has commercial agreements with all of them. Providence Ventures has also invested in more than 25 healthcare venture capital firms. 

The Providence Ventures team, which also has an office in SIlicon Valley, recently hired David Kereiakes, formerly of River Cities Capital Funds, and Rich Proscia, who formerly worked on venture initiatives at CVS and Athenahealth.

“In health care, it’s easy to say you want to be innovative. But, innovation will fall to the backburner if you don’t find the best opportunities and fund them,” said Rod Hochman, M.D., president and CEO of Providence St. Joseph Health, in a statement. “Through Providence Ventures, we have made a commitment to innovation by investing in and partnering with new companies that can help us find solutions to everyday challenges in health care.”

Suggested Articles

Inmediata Health Group, a healthcare clearinghouse, notified patients last month that their personal health data was potentially exposed due to a misconfigured…

Health insurers’ financial performance is on a continuing upward trend, but political and legal risks could pose a threat to that growth.

Senate lawmakers released a draft package of legislation aimed at curbing healthcare costs they believe they can pass on a bipartisan basis.