New York Digital Health Accelerator Launches Call for Applications for Second Class First Class of Healthcare Startups Created Over 120 Jobs, Raised $12 Million in Additional Capital, 2 Companies Acquired
NEW YORK, April 3, 2014 /PRNewswire/ -- Today the New York eHealth Collaborative (NYeC) and the Partnership Fund for New York City (Partnership Fund) launched the call for applications for the second class of the New York Digital Health Accelerator (NYDHA), a program that is making New York a hub for the emerging digital health technology industry. NYDHA's inaugural class of eight companies raised $12 million in additional capital and created over 120 jobs.
In upcoming months, the program will choose up to 10 early- and growth- stage companies that are developing cutting-edge technology products in care coordination, patient engagement, predictive analytics and workflow management for healthcare providers. Each chosen company will receive $100,000 in investment capital along with invaluable mentoring from senior-level executives at leading hospitals and other providers in New York. By introducing these companies to healthcare providers, the program also connects them to potential customers. Applications for the program are due April 18, 2014.
"The Digital Health Accelerator program has proven to be a highly successful means of generating innovative technology solutions for some of healthcare's biggest challenges," said State Health Commissioner, Nirav R. Shah, M.D., M.P.H. "This next class will focus on creating products that improve patient health through technology, such as care coordination software for physicians or medication adherence applications for patients. The New York Digital Health Accelerator is quickly establishing New York as a hub for Health IT innovation and high tech job growth."
"When the government and the private sector work hand-in-hand to encourage business growth in our state we see results. This Accelerator will help New York keep and attract businesses that grow our state's economy and create jobs in our communities," said Maria Gotsch, President and CEO of the Partnership Fund. "Our initial investment will go a long way towards attracting additional investment into New York."
"As New York's Tech Sector continues to thrive, we expect the second class of the Digital Health Accelerator to quickly enable some of the best companies out there to develop the newest health information technology tools," said New York eHealth Collaborative Executive Director, David Whitlinger. "Given New York's unrivaled density of hospitals, doctors and healthcare organizations, the Digital Health Accelerator program has the unique potential right now to reinforce New York as a leader in health information technology by connecting these firms to potential customers in addition to providing them with key funding."
The NYDHA was ranked the #1 Health IT Accelerator in the world by the Rotman School of Business based on 21 other programs and has been lauded by Todd Park, Chief Technology Officer of the United States and the California Healthcare Foundation for its deep industry ties.
Unlike other incubator programs, it offers participants the opportunity to engage directly with a broad network of providers in New York state, including hospitals, long-term care providers, community health centers and primary care providers. This helps them reach a ready market for their products. They also receive direct mentorship and feedback from senior-level executives with the participating providers and will have priority access to the technology platform that is connecting electronic health records across New York State, the Statewide Health Information Network of New York (SHIN-NY).
An application for this program, and more information, is available at digitalhealthaccelerator.com.
The investment capital will be provided by a syndicate of investors, including Baxter Ventures, Deerfield Management Company, Milestone Venture Partners, New Leaf Venture Partners, and the Partnership Fund for New York City. Program sponsors include Genentech (a member of the Roche Group), Infor, Merck, and Pfizer, which will provide funds for operations and pilots. The Empire State Development Corporation and NYeC will provide additional funds to operate the NYDHA.
Thirteen leading healthcare providers have agreed to participate in the program including Community Healthcare Network, FEGS Health and Human Services System, Hudson River Health Care, Maimonides Medical Center, Montefiore Medical Center, Mount Sinai Medical Center, NYC Health and Hospitals Corporation, New York Hospital Queens, New York-Presbyterian Hospital, North Shore LIJ Health System, NYU Langone Medical Center, Stony Brook University Medical Center, and Winthrop University Hospital.
The inaugural class of eight companies that graduated in May 2013 has raised approximately $12 million in aggregate post-program, driving growth and significantly expanding their customer base. Two of the companies were acquired within 6 months of graduating. Senior-level executives from New York State's leading healthcare organizations provided product development feedback. In addition to providing product feedback, the participating healthcare providers facilitated 17 pilots at their organizations and created over 120 jobs.
"We are delighted to be invited to participate in the second round of the Digital Health Accelerator," said Catherine M. Abate, President and CEO of Community Healthcare Network. "The value of mentoring a start-up software company was realized in Round One. We look forward to a new level of innovation being achieved in Round Two."
"As the largest software application company based in New York, Infor is excited about the Digital Healthcare Accelerator," said Charles Phillips, CEO of Infor. "With 72 percent of large hospitals in the U.S. as customers, we are making major investments in healthcare and believe the Digital Healthcare Accelerator can be a conduit for Infor to partner with innovative companies in healthcare technology."
About the New York Digital Health Accelerator (NYDHA): The New York Digital Health Accelerator is a program run by the New York eHealth Collaborative and the Partnership Fund for New York City for early- and growth-stage digital health companies that are developing cutting edge technology products in care coordination, patient engagement, analytics and message alerts for healthcare providers. www.digitalhealthaccelerator.com & #NYDHA
About The New York eHealth Collaborative (NYeC): NYeC is a not-for-profit organization, working in partnership with the New York State Department of Health to improve healthcare for all New Yorkers through health information technology (health IT). Founded in 2006 by healthcare leaders, NYeC receives funding from state and federal grants to serve as the focal point for health IT in the State of New York. NYeC works to develop policies and standards, to assist healthcare providers in making the shift to electronic health records, and to coordinate the creation of the Statewide Health Information Network of New York (SHIN-NY), a network to connect healthcare providers statewide. www.nyehealth.org & @NYeHealth
About the Partnership Fund for New York City (Partnership Fund): The Partnership Fund for New York City (http://fund.pfnyc.org) – formerly the New York City Investment Fund – is the vision of Henry R. Kravis, founding partner of Kohlberg Kravis Roberts & Co., who serves as its Founding Chairman. The Fund has raised over $110 million to mobilize the city's world financial and business leaders to help build a stronger and more diversified local economy. It has built a network of top experts from the investment and corporate communities who help identify and support New York City's most promising entrepreneurs in both the for-profit and not-for-profit sectors. The Fund is governed by a Board of Directors co-chaired by Richard M. Cashin, Managing Partner of One Equity Partners; and Chip Kaye, Co-President, Warburg Pincus LLC. The Fund is the economic development arm of the Partnership for New York City (www.pfnyc.org), an organization of the leaders of New York City's top corporate, investment, and entrepreneurial firms. They work in partnership with city and state government officials, labor groups, and the nonprofit sector to promote the interest of the city and its neighborhoods. The Partnership carries out research, policy formulation, and issue advocacy at the city, state, and federal levels, leveraging the resources and expertise of its CEO and Corporate partners.
SOURCE New York eHealth Collaborative