The Innovation Institute, a for-profit company that owns six nonprofit healthcare systems, has signed a co-development agreement with robotic process automation company Olive.
In partnership, announced On Tuesday, it is run by the innovation incubator branch of the Institute of Innovation, called Innovation Laboratory.
The Innovation Lab will work with Olive to develop and market new products using Olive’s current automation tools, addressing issues identified by clinicians, back-office staff and other employees working in healthcare systems. in the network of the Institute of Innovation. The Innovation Lab will also support pilots of new products in healthcare systems.
The Institute of Innovation, launched in 2013, has six nonprofit health systems as capital investors: Bon Secours Mercy Health in Cincinnati; Children’s Health Orange (Calif.) County; Franciscan Missionaries of Our Lady’s Health System in Baton Rouge, La .; Avera Health in Sioux Falls, SD; Health of Children in the Wood Valley, Calif .; and MultiCare in Tacoma, Wash.
It also has an affiliate health system, Washington-based Renton, Providence, that pays an annual subscription fee to be part of the Innovation Lab.
The Innovation Lab’s partnership with Olive was born out of conversations with healthcare workers who shared ideas that needed automation and artificial intelligence technology to develop, according to Ryan Kelly, CEO of Innovation Lab.
“We were getting a lot of space and opportunities that would benefit from an AI platform,” Kelly said. “The opposition to us building our own … we started looking for a partner.”
The company they have chosen, Olive, develops tools that automate or support various workflows of payers and suppliers, such as verifying the status of claims and simplifying prior authorization. The Innovation Institute began investing in Olive a few years ago through the company’s healthcare fund, a venture fund that invests in startups in the initial growth phase through venture capital firms. LRVHealth.
The Innovation Lab will bring its “clinical and operational knowledge” to the co-development process, while Olive will bring the “muscle” to build the technology, Kelly said.
A co-development partnership “certainly saves hospitals from having to build their own automation capabilities,” said Mark Snyder, director of people and productivity at the West Monroe consulting firm. But “automation tools are very much tied to a hospital’s unique processes,” so they often require some customization.
Automation encompasses a range of capabilities, from technologies that manage specific activities to complete AI that leverages data to help make decisions.
A common type of automation technology used in healthcare is the automation of robotic processes, which typically involves the use of bots to connect data from one system to another without human intervention.
Such bots take on “rolling, repeatable” transactions that “don’t require critical thinking,” Snyder said, and are often used for activities such as claims management.
AI assumes more complex functions, since the technology is able to work with unstructured data and track insight from models.
Unlike RPA, which tends to focus on back-office functions, AI use cases “typically can go further and deeper into front-end interaction with the limb or patient,” Dion said. Sheidy, head of healthcare consulting at the consulting firm KPMG, as well as through the provision of care delivery and improving the patient experience.
AI healthcare companies raised a record $ 2.5 billion in funding in the first quarter of 2021, according to data compiled by CB Insights, with startups facing back-office automation attracting larger investments. Infinitus Systems, a company that uses AI to automate phone calls for clinics, raised $ 21.4 million in the quarter; Akasa’s revenue cycle management startup raised $ 60 million.
Olive, who was founded in 2012, last week announced she had reached out to one Valuation of $ 4 billion after raising $ 400 million in its last round of funding.
The Innovation and Olive Laboratories will likely share ownership of the products they develop, although ownership may vary depending on the product and how much development is needed.
The companies will sell co-developed tools to Olive’s customer base and promote the benefits to members of the Innovation Lab. The Innovation and Olive Laboratory will share revenues from co-developed instruments that are brought to market; the Innovation Lab will also share a portion of its marketing revenues with the healthcare system that made the idea visible.
The Innovation Lab model typically involves sharing 40% of the marketing revenue with the person who created the initial idea and 20% with that innovator’s health system.
The capital investors of the Innovation Institute – the six health systems – also receive a share of the company’s profits – which include revenues from the Innovation Lab, the company’s enterprise fund and their portfolio companies – based on their level of investment.
The minimum investment required to become a property member of the Innovation Institute is $ 10 million, according to him the company’s website.
The Innovation and Olive Laboratory so far is evaluating half a dozen ideas for possible co-developed products. One of the first projects they have considered is whether Olive can help scale and add automation to a platform for case managers already launched through the Innovation Lab, called Koazie.
“That’s one of the things we evaluated,” Kelly said. “With any partnership like this, we’re really fighting for that first ‘win’ from which we can build and use it as a cornerstone for the partnership.”