LifePoint Health has announced a partnership with New York City-based venture studio 25madison to launch a health tech incubator that will be based out of Brentwood.
The two entities have invested $20 million to launch the firm, called 25m Health, and will begin investing in startups in the hopes of addressing pain points within LifePoint’s 90-hospital network. CEO David Dill said initially they will focus on administrative and workforce solutions, including scheduling and paperwork. According to a press release, the venture studio will be the central innovation engine for the health system.
The seed funding is currently being used to recruit a team and start building internal infrastructure, which will soon begin investing in early-stage businesses. 25madison co-founder and CEO Steven Price said they will aim to launch a few businesses per year.
Price said they are building out a physical location in the region to collaborate with other venture capital firms and health systems: "This is not a, ‘we want to be in this little closed circle,’” he told the Post. “Startups need lots of capital, lots of resources — lots of people will be involved in companies and it'll allow for richer solutions.”
LifePoint has dabbled in the investment capital space before, having been an early strategic investor in Nashville-based private equity firm Heritage Group, but Dill says this partnerships represents a shift in the company's ability to drive innovation internally while solving problems in the broader industry.
“We have grown up as a company,” Dill told the Post. “We know innovation is going to be key to our success long term, so we want to lean into that and we want to put our money where our mouth is and be part of building these tailor-made solutions for us, initially, but to find their way into the commercial markets over time.”
25m Health already has a stacked council of senior advisers, who will help guide the strategic direction of the firm. They include:
- Christ Altchek: Founder and CEO, Cadence
- Tara Bishop: Founder and General Partner, Black Opal Ventures
- John Chadwick: Partner, Claritas Capital
- Sahil Choundhry: Co-founder, Stealth-mode
- Chris Sakalocky: Managing Director, Healthcare and Life Sciences, Google Cloud
- Dawn Whaley: President and Chief Marketing Officer, Sharecare
- Zach Zaro: Former CTO, Maven Clinic; Former CTO, quip