Today at health, it we're going to take a look at general catalyst, most recent announcement. And what they're doing with Mark Harrison, former CEO of Intermountain should be interesting. My name is bill Russell. I'm a former CIO for a 16 hospital system and creator of this week health. Instead of channels and events dedicated to leveraging the power of community to propel healthcare forward. We want to thank our show sponsors who are investing in developing the next generation of health leaders. Short test artist, site parlay it's certified health, notable and service. Now check them out at this week. health.com/today. Having a child with cancer is one of the most painful and difficult situations family can face in 2023 to celebrate five years at this week. Health. We are working to give back. We are partnering with Alex's lemonade. Stand all year long. We had a goal to raise $50,000 from our community. And you exceeded that we are already up over $60,000 for the year. We asked you to join us, though. We'd like to blew through that number. Hit our website top right-hand column. You'll see a logo for the lemonade stand. Click on that to give today. We believe in the generosity of our community and we thank you in advance. Hey, one last thing, share this podcast with a friend or colleague you should, as a foundation for daily or weekly discussions on the topics that are relevant to you. And the industry. They can subscribe wherever you listen to podcasts. All right. Let's take a look at this announcement. So I'm reading this straight off the. General catalyst website, the future of health of boldly forward. Hatco , health assurance transformation corporation. I'll just do a couple excerpts here. Sometimes two different paths can lead to the same place. We first met in 2017. This is talking about. Mark Harrison, former CEO of Intermountain
and Heymont, Tonasia the CEO of general catalyst. And they go on today. We are unveiling a new company owned by general catalyst called health assurance transformation company. HECO as we call it. It's going to be focused on three things, working with our 20 plus health system partners. To help them develop an execute their transformation journey to health assurance. Number two, helping to catalyze the health assurance ecosystem, building an interoperability model with technology solutions. Including a subset of our healthcare portfolio companies to drive this transformation. And number three, acquiring and operating a health system. For the longterm where we can demonstrate the blueprint of this transformation. For the rest of the industry.
Hechos charter is not to disrupt healthcare systems. Rather it is to be in service of healthcare organizations everywhere to change how they deliver a fundamentally better experience for consumers and to prove the transformative effect of a true partnership between technologists. Caregivers and capital. It's our belief that by making these organizations more profitable, more vibrant, and more innovative, they will be better equipped to serve everyone in the communities with greater impact. All right. Five core principles. Number one, true alignment of stakeholders interests. You cannot build an enduring functional system where providers, patients, and financial players. Are not aligned. Hecho will be purpose-built with the goal to ensure all the stakeholders are similarly incentivized. Number two more patient capital with decade long time horizon.
The transformation of our healthcare system is not a short-term endeavor. Even venture's decade, long time horizons are insufficient to effect real change. Next number three, a reorientation around platform innovations. As we see it, one of the biggest challenges of the PE model in healthcare today. Is the maniacal focus of taking costs out of the system, leaving little incentives for investment. Of any kind. We believe it's not about taking costs out as much as it is about putting technology and innovation in part of the Hakko plan will involve giving health systems. The opportunity to capitalize. On new revenue streams, which in turn. Should allow them to invest in more innovation and in servicing their communities. , number four, commitment to radical collaboration hecho is committed to creating an open innovation platform. We plan. To partner very closely with each of our 20 plus healthcare system partners, openly sharing best practices, new technologies and transformation playbooks. With those partners who together cover up about 15% of the us population. This represents a rare opportunity to demonstrate and replicate. At scale, best practices. So there you go. And number five, a. Decisive pivot to value based care. As we've said, a shift to value based care is an essential part of our approach. Hatco attends. To work with. E the ecosystem to demonstrate that. A model that is better for patients. Can also be good for business.
The board and leadership team of Hatco bring the kind of experience and expertise we believe is required for driving value at scale. Digital transformation and healthcare financing.
So there you go. Ah, there's a couple more sentences. A couple more paragraphs here. It closes with this. We hope our work will inspire others to join our health assurance movement and usher in a new era of better health for everyone in our communities.
So what's my, so what on this. This podcast is, is really about the intersection of healthcare and technology. And I think that's part of the story here. For sure. But I think the more important thing than they're going to buy a hospital, which is going to be the headline. Out of this is that they are looking to transform healthcare. And they believe that that can happen. With a reorientation of the system, which is going to take. Decades. It's not going to take a year or two years. And that's when venture capital gets involved. When private equity gets involved, they're typically looking for returns very quickly. And they're saying, look, we need a longer time horizon. With that longer time horizon, they want to align stakeholder interests. Providers. Payers. Patients the financial, , players as well, the investors, the insurance companies, government, not only that, but also technology players. Right? So that's a big part of this as well, is that they see technology. . As a foundation for transformation. And they talk about that. They talk about the platform innovations that they believe. Now it's important to note that when they're talking about platform, we think about technology platform systems. When they talk about platform, they are talking. Literally about the healthcare ecosystem. They're talking about looking at the healthcare ecosystem as a platform. And we've had those kinds of conversations with others on the show. So instead of creating, , essentially healthcare debt, and, , really taxing our, , federal government and its spending. They're looking at. Rethinking it and building a new platform that actually works for all the constituents involved. And, , finally. I think it gets lost , in this, , Release is they already have 20 partners which span 15% of the U S population they are looking to work with them They're looking to work in conjunction with that man so if you're one of those partners I have a feeling you'll be talking to the general catalyst people as they start to head down this path I think the buying of a health system again will be the lead But at the end of the day it's not to buy a health system and grow and grow and grow i think it's the BioHealth. Some to prove out the models that they're going to try to implement so again very interesting play very interesting article i think it's something to keep an eye on that's something that's going to again they're taking a long-term time horizon it's not something that's going to change the world tomorrow But it is something we're gonna want to keep an eye on to see what areas they're going to focus in on first How they're going to do it and i have a feeling they're going to be pretty open about this so i think it's going to going to be something that you're going to be able to take things from it And utilizing your health system All right that's all for today I Don't forget share this podcast with a friend or colleague get the conversation started or keep it going We want to thank our channel sponsors who are investing in our mission to develop the next generation of health leaders Short test artist, site parlance Certified health notable and 📍 service now check them out at this week Dot com slash today Thanks for listening That's all for now