Unique Business Model
The Innovation Institute is authorized to have seven non-profit health systems as equity investors or “Member Owners.” Each investor holds a seat on the Members Committee. The day-to-day operations are managed by a Board of Managers. Launched in January 2013 as a for-profit LLC, The Innovation Institute has three major elements:
(1) The Innovation Lab
The Innovation Lab is an incubator, taking ideas from the concept stage, to prototypes, to end products. The Lab taps into the innovative potential of healthcare’s employees, physicians and business partners. Technology underwriters support the Lab with expertise and funding.
(2) The EDG
The Enterprise Development Group (EDG) is the economic engine for the Institute, generating cash flow and profits to the Institute in support of innovation. Its portfolio of health care related companies provides services to the Member Owners and other healthcare providers.
(3) The Fund
The Fund raises capital from private investors to fund early to mid-stage companies in the healthcare sector. The Fund generates financial returns for investors and market intelligence back to Member Owners.