AMA Invests $27.2M in Health IT Co to Advance Value-Based Care
Health IT start-up Health2047 plans to use the AMA investment to develop and distribute solutions for value-based care and physician productivity.
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By - The American Medical Association (AMA) recently invested another $27.2 million in Health2047 Inc., a health IT start-up in Silicon Valley that aims to tackle value-based care, physician productivity, and several other of healthcare’s biggest challenges.
AMA already invested $15 million in Health2047 in 2016 to become the founding partner of the company.
The most recent round of funds will help Health2047 to increase the development and commercialization of innovative technologies that focus on reducing chronic disease prevalence, improving physician productivity, and implementing value-based care, the health IT company stated in a press release.
“This new investment will help us create much-needed changes in the US healthcare system,” said Lawrence K. Cohen, Health2047 Chief Executive Officer. “Our growing team collaborates closely with both the physician community and technology leaders to tackle key problem areas. We will deploy this new investment to broaden our network of strategic partners and accelerate the pace at which we are able to develop and spin out new businesses in our four areas of focus.”
Health2047 launched in 2016 with the help of the AMA. Together, the organizations intend to create “an ecosystem of best-in-class partners who work together to tackle our largest healthcare challenges,” the company’s website states.
The health IT company’s primary goals are to develop solutions for data liquidity, chronic disease management, physician productivity, and value-based care using the insights from the over 230,000 physicians and medical student members of the AMA.
Health2047 noted in the most recent press release that AMA’s latest investment will mainly go to improvements in the three latter goals. The health IT company tackled data liquidity in 2017 with the launch of the healthcare data network spin out Akiri.
AMA expects the ongoing partnership with Health2047 to keep bringing health IT solutions to the healthcare industry that will transform how care is delivered.
“Improving the health of the nation is at the core of the AMA's work and the innovation that Health2047 is leading can address some of the greatest challenges in healthcare today,” said James L. Madara, AMA Chief Executive Officer and Health2047 Board Chair. “Our mutual goal is to improve both care delivery and health outcomes to benefit the nation’s physicians and their patients and we’re excited to provide expansion capital for Health2047’s development and commercialization efforts.”
Additionally, Health2047 announced that Lawrence K. Cohen became the company’s CEO. Cohen formerly was the Executive Vice President of Research and Business Development at Kadmon Holdings, Inc. and the CEO and Director of VIA Pharmaceuticals, according to his LinkedIn page.
Health2047 also named a CFO and three new Managing Directors. Gary Cookhorn, former Managing Director of Fortress Investment Group, is now CFO, and the Managing Directors are Daphne Li, former Director of Strategy at Apple and Member of Bain & Company's Business Acceleration Group, Piers Nash, former IBM Global Solutions Consultant in genomics and healthcare and Member of the founding team at the Genomic Data Common, and Lúcia Soares, former VP of Health Technology Program Strategy and Delivery at Johnson & Johnson.
The company also moved its corporate headquarters to Menlo Park, the announcement stated.
