November 10, 2024

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Can Collaboration Lead to Sustainability (and Success) in Healthcare Innovation?

Can Collaboration Lead to Sustainability (and Success) in Healthcare Innovation?

Four large health systems have joined forces to launch Longitude Health. They’re hoping that economy of size can overcome the barriers to innovation and actually implement value-based care.

Collaboration has become a key strategy in healthcare innovation.

Four major health systems—Providence, Novant Health, Baylor Scott & White Health and the Memorial Hermann Health System—have announced the launch of Longitude Health, which “aims to revolutionize the way health systems operate, delivering impactful change for patients and communities across the United States.”

The partnership aims to combine the resources of the four health systems to invest in strategies and technology that look to improve care management and coordination, health and wellness, and system improvement. A press release issued by Providence says the new group intends to make “multiple strategic investments” within two years and will invite other health systems to join them.

“Longitude Health will scale the next generation of capabilities faster and more effectively than if individual health systems attempted to do so themselves,” Pete McCanna, CEO of Baylor Scott & White Health, said in the press release. “We aim to set a new standard, demonstrating that new approaches can optimize organizations performance and quality and drive positive systemic change to benefit patients.”

While the announcement is short on details, it points to the idea of developing programs or deploying new technology—perhaps even spinning out new business lines–that can scale out quicker and more effectively, improving the chances of sustainability. The press release lists the organization’s three main initiatives as transforming business models, improving health system performance and empowering healthier futures.

The collaboration also creates a sizable organization to work with payers on value-based care.

“Healthcare requires new approaches,” David Callender, MD, Memorial Hermann’s president and CEO, said in the release. “Health systems must expand their core focus areas beyond care delivery and into new business creation and services that will drive high-value care. Through this collaborative approach, we aim to take the lead in designing solutions that drive operational transformation and translate into tangible benefits for the patients and communities that we serve.” 

While partnerships aren’t entirely new in healthcare, the idea of getting disparate health systems to work together has usually come in the form of M&A deals. Kaiser Permanente launched Risant Health in 2023 to create a value-based care network, has so far acquired Geisinger and Cone Health and plans to add another three or four health systems in the next five years. Meanwhile, Transcarent, a digital health company launched in 2020 by Glen Tullman, unveiled its “National Independent Provider Ecosystem” in 2023 with 10 health systems (including Memorial Hermann and Baylor Scott & White).

The new group’s CEO is Paul Mango, a former executive at the U.S. Department of Health and Human Services (HHS) and the Center for Medicare & Medicaid Services (CMS), as well as a former partner at McKinsey and a gubernatorial candidate in Pennsylvania. The CFO is Brett Moraski, who held VP roles at Highmark Health and Wellpoint and was a founding managing partner at SEMCAP Health and operating partner at Frazier Healthcare Partners.

The CEOs of the founding health systems—McCanna, Callender, Carl Amato at Novant Health and Rod Hochman, MD, at Providence—will serve on the board of directors, with McCann as chair.

Eric Wicklund is the associate content manager and senior editor for Innovation at HealthLeaders.

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