Healthcare innovation network AVIA has secured $22 million in its latest funding round that includes investment from First Trust Capital Partners as well as 12 health systems.
Cedars-Sinai Health System, ChristianaCare, Providence St. Joseph Health, MemorialCare, and Inception Health are among the 12 health systems that are members of the company's innovation network and also investors.
Strategic investors in this round included Sumitomo Corporation of Americas, a global business and investment company, and investment bank Ziegler.
Founded in 2012, AVIA works with hospitals and health systems to deploy digital solutions and has raised more than $50 million to date, according to the company.
AVIA will use the investment to expand its resources to better serve healthcare organizations embarking on massive technological transformations, company executives said. Specifically, AVIA will use the new funds to grow its offerings in areas including consumerism, population health, and risk management, and to reach new markets such as pediatric hospitals and health insurers, starting with provider-sponsored plans.
“Digital technologies have transformed nearly every other industry, resulting in massive value creation, increased competitive intensity, and greater disparity between winners and losers. The installation of electronic medical record systems over the last decade represents just the first step in digital’s impact on healthcare," Eric Langshur, co-founder and CEO of AVIA, said in a statement.
"As the digital disruption of healthcare accelerates over the coming decade, we see big opportunities but equally big risks for incumbent healthcare providers," Langshur said.
More than 50 health systems are now members of AVIA's network and collaborate on strategic initiatives and engage in consulting services to increase the speed and efficiency of digital projects.
One of the organization's major initiatives is the Medicaid Transformation Project, which consists of 30 health systems with 350 hospitals and is led by former acting Centers for Medicare & Medicaid Services Administrator Andy Slavitt.
The project, which kicked off in August 2018, has a targeted focus on four key issues facing Medicaid patients: behavioral health, women and infant care, substance use disorder and avoidable emergency department visits.
AVIA also is growing its consulting practice to help healthcare organizations link their overarching strategies to technology-enabled business plans, as well as to build the skills, capacity and governance to implement them faster, the organization said.
"To truly improve quality, affordability, and access, we need to accelerate practical digital solutions for providers, patients, and consumers,” Aaron Martin, chief digital officer at Providence, an AVIA investor and member since 2013, said in a statement.
“AVIA’s unique business and service model helps us extend our efforts in digital transformation in order to deliver our mission and serve our communities," Martin said.
AVIA also has added two healthcare industry veterans to its board of directors: Jon Phillips, managing director and head of private equity at First Trust Capital Partners, LLC, and Darren Dworkin, senior vice president of enterprise information services and chief information officer at Cedars-Sinai.