CHICAGO – Froedtert Health and VCU Health Systems announced they have joined the fast-growing HealthEco collaborative of health systems focused on building innovative new business models and alternative revenue streams.
Milwaukee-based Froedtert Health and Richmond-based VCU Health System join two other healthcare systems that have already signed on with HealthEco, University Hospitals in Cleveland and LCMC Health in New Orleans. By collaborating with HealthEco, participating healthcare systems work together to generate new revenues and boost margins at a time when provider financial performance is under more strain than ever.
“In the year of the COVID-19 pandemic, healthcare systems need an expansion of bandwidth to drive new business opportunities in markets that are getting more crowded with competitors,” said HealthEco Managing Partner Jami Youmans. “Very few in the industry are going to solve their problems alone, so we’ve partnered with them to capture additional growth opportunities.”
HealthEco Managing Partner Kyle Hathaway says HealthEco’s overarching strategy is to bring leadership and coordination to the creation and adoption of new business models at scale.
“Health systems are traditionally focused on their core business and there is little time and resources dedicated to play offense and create new revenue opportunities,” said Hathaway. “Health systems need each other to be successful and access to more strategies than traditional growth strategies typically allow.”
And HealthEco’s model of bringing together mid-sized health systems from across the country has great appeal to members of the collaborative.
“We must find and implement new health-related opportunities offering alternative revenue sources that will support and fully align with our mission,” said VCU Health CFO Melinda Hancock. “Working collaboratively and innovatively with other compatible partners optimizes the efforts already underway here at VCU Health System and allows us to lessen the risk and increase the efficiency with exploring new opportunities.”
“Ensuring our organization is positioned to continue to deliver world-class healthcare in the COVID and post-COVID environment is central to Froedtert Health’s mission, which makes a partnership with HealthEco a great opportunity,” said Scott Hawig, Executive Vice President, Chief Financial and Administrative Officer and Treasurer, Froedtert Health. “HealthEco gives us the ability to create a roadmap and continue to collaborate with other like-minded health systems to capitalize on new opportunities.”
HealthEco is a Chicago-based healthcare firm led by former hospital executives and venture capital partners. They combine their decades of experience and unique skill sets to bring health systems and health providers together with profitable innovation that builds revenues, improves margins and creates sustainable financial health. For more information visit www.joinhealtheco.com.
About Froedtert Health
Froedtert Health is a Milwaukee, Wisconsin-based, integrated health care system providing a variety of health-related services, including hospitals and health centers, home care, laboratory, health insurance, employer health services and workplace clinics, and digital health solutions.
About VCU and VCU Health
Virginia Commonwealth University is a major, urban public research university with national and international rankings in sponsored research. Located in downtown Richmond, VCU enrolls more than 30,000 students in 233 degree and certificate programs in the arts, sciences and humanities. Twenty-two of the programs are unique in Virginia, many of them crossing the disciplines of VCU’s 11 schools and three colleges. The VCU Health brand represents the VCU health sciences academic programs, the VCU Massey Cancer Center and the VCU Health System, which comprises VCU Medical Center (the only academic medical center in the region), Community Memorial Hospital, Children’s Hospital of Richmond at VCU, and MCV Physicians. The clinical enterprise includes a collaboration with Sheltering Arms Institute for physical rehabilitation services. For more, please visit www.vcu.edu and vcuhealth.org.