Health2047 Inc., a Silicon Valley-based integrated innovation company, has announced a $27.2 million follow-on investment from its founding partner, the American Medical Association (AMA).
Health2047 officials said in the announcement that it will use the new funds to “ramp up the development and commercialization of promising new technology-based solutions in the areas of chronic disease reduction, radical productivity change, and value-based healthcare, just as it did in data liquidity with the 2017 spin out of new health data network company, Akiri.”
Akiri, a San Francisco-based spinoff of Health2047, announced earlier this year that it would be launching a blockchain-based network-as-a-service (NaaS) platform to the entire healthcare industry.
Health2047 CEO Lawrence K. Cohen said in a statement, “This new investment will help us create much-needed changes in the U.S. healthcare system.” He added, “Our growing team collaborates closely with both the physician community and technology leaders to tackle key problem areas. We will deploy this new investment to broaden our network of strategic partners and accelerate the pace at which we are able to develop and spin out new businesses in our four areas of focus.”
The AMA announced in January 2016 it was investing $15 million to become the founding partner of Health2047, a stand-alone, for-profit company focused on developing solutions to the biggest challenges facing the nation’s 1.1 million physicians and the patients they serve.
Specifically, AMA said at the time that Health2047’s Silicon Valley-based innovation studio would collaborate with AMA content experts across a wide range of medical, health policy, and pragmatic practice areas. Each of its projects will touch on a particular need important to the healthcare economy, including system-level solutions to chronic care; value-based healthcare and payments; connected health solutions; and collaboration models for physicians, providers, payers and patients.
In November, the company announced it was spinning out a separate entity called Health2047 SwitchCo, Inc.
“Improving the health of the nation is at the core of the AMA’s work, and the innovation that Health2047 is leading can address some of the greatest challenges in healthcare today,” said AMA CEO and Health2047 Board Chair James L. Madara, M.D. “Our mutual goal is to improve both care delivery and health outcomes to benefit the nation’s physicians and their patients, and we’re excited to provide expansion capital for Health2047’s development and commercialization efforts.”