Reaching Critical Mass
The term “critical mass” comes to mind when I think about the inaugural Aegis Digital Consortium Leadership Retreat that took place on September 16-17 in Hudson Valley, New York. Just three years ago, Aegis Ventures set out to solve problems with health systems – rather than simply for them. Together, they would develop digital innovations using artificial intelligence in collaboration between Aegis’s portfolio companies and health system partners. The people behind Aegis’s founding and growth respect health systems’ capacity to identify their operational and clinical challenges and want to fix them. They don’t need technologists to tell them their business or upend their model. Instead, Aegis believes that inventing solutions in search of a problem is the wrong approach – that the road to improving healthcare runs right through health systems’ day-to-day needs. We’ve worked hard to build that road and have been encouraged by the evolving support and interest of major health systems. The validation of that health system-first approach was on full display at the Retreat, where 30 executives from our 11 Digital Consortium health-system partners got together to listen to industry leaders’ case studies and talk to each other.
How Shared Experience is Driving Change
What I heard was an abundance of shared experience and consensus around the challenges and opportunities that are being driven by rapid change. Health systems are facing common problems — intense competition for patients, compressed margins, workforce health, and point solution fatigue — that are testing their ability to survive and serve their communities. The issues are pervasive and complex, yet, we’re also witnessing a technological revolution. AI is making inroads with health systems, implemented to automate time-consuming repetitive tasks, while unlocking new solutions to improve care delivery. Patient expectations are driving this pressure to innovate, with the care delivery experience changed forever by the virtual-care exigencies of COVID. Patients now expect healthcare to be more personalized, convenient, and seamless. As hospitals explore AI, patient experience must be at the forefront for adoption to succeed.
Is This the Right Time for Investment?
Now is the time for bold investments in technology and new business models. Health systems possess valuable but underutilized assets – data, frontline access, and operational expertise. Many are already investing in areas like genomics, specialty pharmacy, durable medical equipment, and procurement. To ensure long-term sustainability, strategic investments in these and other emerging business models are crucial to diversifying revenue and margins.
We believe health systems must join forces to shape this next wave of innovation. Regional health systems are up against larger, vertically integrated players with deeper pockets for innovation. By coming together, health systems can pool their resources and build solutions that create value across their entire operation.
The Value of Partnership
Critical mass is defined as the amount of something required to start and maintain a venture. That’s what Aegis Ventures has achieved in a short amount of time. With our Consortium partners opening their doors to AI and other digital innovations, the institutions that deliver healthcare across the country will be better resourced to move past this critical time and bring higher levels of performance and outcomes to their patients. Looking at the gathering of health systems uniting at the retreat, I was filled with a sense of mission, both for Aegis and our Consortium partners. The partnering and presence of those organizations has been a foundational next step in Aegis’s growth and path to come. It was a milestone time together and I’m excited by what we will build together.
Find Leadership Retreat photos here