What is The Innovation Institute?
The Innovation Institute is an organization focused on transforming healthcare through the development of innovative new products, services, and ideas. The Institute is an incubator that helps nurture ideas and brings them to market to improve care delivery, eliminate waste, and extend human life. Think of the Institute as a type of “Shark Tank,” only a lot friendlier. Here, we evaluate inventors’ ideas and determine the long-term potential for each concept. We walk with the inventor to obtain patents, develop prototypes, and navigate the best way to take their idea to market as a new product, license agreement, or even a new company.
Why We Exist
The Innovation Institute exists:
- To transform care delivery.
- To help physicians, employees, and clinicians commercialize their ideas.
- To find new revenues sources and advance innovation.
- To collaborate and partner with Health Systems and Industry.
- To advance and find innovative solutions and products that help the underserved.
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:
Who Owns The Innovation Institute?
The Innovation Institute is a for-profit, limited liability company owned by non-profit health systems (our equity owners or “Member Owners”). The Innovation Institute is authorized to have seven “Member Owners” as investors. The minimum investment required to be Member Owner is $10 million. This can be a cash investment, or a combination of cash and asset contribution. The Innovation Institute has a unique business model that has allowed it to be profitable from Day One by holding a portfolio of service companies that sell services to hospitals and health systems internationally. The profits from these service companies are reinvested in innovation. There is no requirement that Member Owners use these companies.
The Institute is a “perpetual company,” established to focus on innovation into perpetuity for the benefit of those systems that invest. In other words, there is no planned liquidity event to ever go public with an IPO, sell the company, or merge it.