In Search Of The Next Bill Gates: Hospitals Gamble On Health-Tech Startups In Hopes Of Striking Big
“We view this as a strategic investment. It will be important to the care of patients and we also can presumably make money,” says Thomas Thornton, senior vice president of Northwell Ventures, the for-profit arm of a health system in New York.
The Wall Street Journal:
Hospitals Fund Potential Game-Changers In Health Tech
Luis F. Romo is chasing the startup dream, developing a device that disinfects operating rooms and stretchers by zapping them with ultraviolet rays. The 30-year-old Mr. Romo has a catchy name for his invention, “PurpleSun,” and a solid but untraditional backer: a hospital. Northwell Health, of New Hyde Park, N.Y., has put about $3 million into Mr. Romo’s idea and may invest more in coming years. As hospital-acquired infections have become the scourge of modern institutions, Northwell officials are eager to put the germ-fighting device to work in their 23 hospitals. They also hope to make back their investment—and more—if other hospitals want to use PurpleSun. (Lagnado, 3/7)
In other hospital news —
Not-For-Profit Hospital Downgrades Surged In 2017
The ratio of not-for-profit hospital and health system credit downgrades to upgrades rose in 2017 to levels that were even higher than during the Great Recession in 2008 and 2009, according to a new report from Moody's Investors Service. There were 41 downgrades and 12 upgrades in 2017, a ratio of 3.4-to-1. That's compared with 2.8-to-1 and 2-to-1 in 2008 and 2009, respectively. Last year's ratio was also higher than in 2016, a year that saw 32 downgrades and 21 upgrades, or a 1.5-to-1 ratio, according to Moody's. (Bannow, 3/6)