General Catalyst adds WellSpan as fourth health system partner

Intermountain CEO and President Dr. Marc Harrison is stepping down this fall to reportedly run General Catalyst's investment platform.

Photo: Courtesy of Intermountain Healthcare

Venture capital firm General Catalyst has partnered with its fourth healthcare system, WellSpan Health of Pennsylvania. 

WellSpan will work with General Catalyst and its other health system partners, which include HCA, Intermountain and Jefferson Health, to drive digital transformation and create or scale health sector innovation. 

The WellSpan partnership aims to improve patient experiences and business efficiency, optimize caregiver relationships and create new care models, according to the announcement.

Dr.  Marc Harrison, president and CEO of Intermountain Healthcare, will run General Catalyst's investment platform, according to an Aug. 23 data and insights posting from the American Hospital Association. Intermountain announced earlier this month that Harrison would leave his post this fall as the company's president and CEO for a leadership position at General Catalyst.

In June, Daryl Tol, the former CEO of Altamonte Springs, Florida-based Advent Health, became General Catalyst's head of Health Assurance. Tol is expected to facilitate relationships between health systems and startups to drive innovation that meets the needs of the health systems. 

"People talk about the U.S. healthcare system, but a connected system doesn't exist. We're on a mission to change that, creating a resilient infrastructure that's value-oriented and enhances quality, access, equity, and affordability," Tol said by statement.

"With Daryl, our Catalyst Advisors and global investment team we can transcend the role of a traditional venture firm," said Hemant Taneja, managing partner, General Catalyst. "We don't want a Silicon Valley disruptive mindset. We want to partner with the industry. If we are going to transform the healthcare system and make health assurance a reality, we need to make it more affordable and valuable and build together with that intentionality and focus."

The WellSpan partnership is the first for General Catalyst since Tol took on the role as head of the Health Assurance Ecosystem. 

Dr. Stephen Klasko, the former Jefferson Health CEO, was named executive-in-residence in February. 

WHY THIS MATTERS

General Catalyst is providing a single point of access for healthcare leaders to better understand and tap innovations.

All of the partners aim to build a more resilient, value-oriented healthcare system that enhances quality, access, equity and affordability. The firm's partnership approach seeks to "radically collaborate" with all different types of healthcare systems to understand what works for each to create a transformed digital healthcare system, the company said.

THE LARGER TREND

General Catalyst is a 22-year-old Cambridge, Massachusetts-based venture capital firm that has been doubling down on its investments, according to the AHA report. While many VCs in the first half of 2022 have been pulling back on investments, particularly in the digital health sector, General Catalyst last month launched its $670 million Health Assurance Fund II, focusing on health system partnerships.

With the new Health Assurance Fund II, the firm is expected to continue to invest in innovations such as the convergence of digital and physical care, health equity, mental health and value-based care. 

General Catalyst has invested in a number of digital health companies, from behavioral health company Mindstrong to fitness startup Tempo and chronic care startup Livongo. 

WellSpan is an integrated delivery system focused on value-based care. It encompasses 2,000 employed providers, 220 locations, eight hospitals, and a behavioral health organization serving South Central Pennsylvania and northern Maryland. 

ON THE RECORD

"Our collaboration with General Catalyst provides a seat at the table with other like-minded change makers from innovative organizations across the country to share ideas and collaborate on initiatives that drive transformation," said Dr. Roxanna Gapstur, president and CEO of WellSpan Health. "With more direct access to the newest start-up ideas, trends and advances in technology through General Catalyst we can focus our attention on originative opportunities to improve the care and experience of our patients."

Twitter: @SusanJMorse
Email the writer: SMorse@himss.org