Kaiser Permanente Ventures (KPV) has closed its fifth investment fund at $141 million, bringing the total assets under management to more than $500 million.
The latest fund includes financial commitments from Kaiser Permanente and returning external strategic investors including Tufts Health Plan, Henry Ford Health System, and Highmark Ventures, a subsidiary of Highmark Health. Oakland, Calif.-based KPV invests in companies focused on health information technology, digital health, healthcare services, medical devices, diagnostics, and precision medicine.
The firm has invested in more than 70 companies through its venture funds since the program's inception in 1998. KPV's portfolio includes iRhythm (IRTC), an ambulatory cardiac monitoring company; Health Catalyst (HCST), a leader in health care analytics and outcomes improvement solutions; and Omada Health, a pioneer in digital health and behavioral change.
"We are in the midst of a tremendous opportunity as the U.S. healthcare system transitions to value-based care," said Chris Grant, executive vice president and chief operating officer of The Permanente Federation, and co-founder of KPV, in a statement. "To succeed in this shift, and to help Kaiser Permanente advance its own efforts to deliver high-quality, accessible, and cost-effective care, we continue to find and fund the innovations and entrepreneurs that understand where the system is headed and that can enable its future success."
The Permanente Federation is the national leadership and consulting organization for the eight Permanente Medical Groups, which are composed of nearly 23,000 physicians who care for 12.2 million Kaiser Permanente members.
In a statement, Sam Brasch, senior managing director of KPV, said the organization has achieved success by engaging with Kaiser Permanente and investment partners, and applying those learnings to support entrepreneurs. It has helped emerging companies better understand and build products and services that fulfill the actual needs of the healthcare system and the individual healthcare consumer, he said. "The success of Fund V underscores our proven ability to identify and meaningfully support entrepreneurs tackling the most pressing challenges facing the U.S. healthcare system," said Brasch.
