CancerIQ’s precision health platform includes an innovative online risk assessment that makes it easy to determine an individual’s cancer risk based on family history, genetics, behavior and other factors and then connects them to the best and most innovative approaches to prevention and care.

The COVID-19 pandemic resulted in an estimated 9.5 million missed screenings and has led to an increase in late-stage cancer diagnoses that are more costly and have a greater impact on quality of life and outcomes than early-stage diagnoses. With that, the company believes its tool can help providers prioritize patients for fast-tracked screening and timely follow-up care.

CancerIQ’s precision health platform is being used by clinicians at more than 180 locations across the country, including at OSF Centers for Breast Health in Peoria and Rockford, and it will soon be implemented for screening Gastroenterology patients in Peoria. The ultimate goal is to expand use throughout OSF hospitals and clinics, including a new comprehensive cancer institute under construction in Peoria that will provide all services and support under one roof.

Ryan Luginbuhl, director of Oncology Services for OSF HealthCare says the new center, scheduled to open next year, will be able to house the additional equipment and personnel for expanded use of CancerIQ and follow-up services. Luginbuhl stresses its deployment fits with the goal of extending cancer screening and prevention to more patients.

Luginbuhl adds, “The company leadership in managing growth has been excellent. As we’ve interacted more with members of the team, they continue to impress us. The vision of the leadership in the company is strong, the rollouts of the product in other locations has been strong, and they’ve consistently delivered and continue to innovate in developing their platform.”

OSF HealthCare was the first hospital system to embrace CancerIQ as the best solution for early identification of individuals at high risk for cancer. Mayank Taneja, director of Venture Investments for OSF Healthcare also sees CancerIQ as a leader for offering a robust platform to manage patients from diagnosis to treatment.

“The company's platform also offers predictive analytics and clinical guidance with proven outcomes, a digital genetic test ordering platform, and patient management and education tools, enabling clinicians to save time, reduce the cost of care, and improve outcomes by detecting cancer at an early stage.” Taneja explains.

Co-founder and CEO Feyi Olopade Ayodele says, “To have continued support and engagement at the highest level from OSF is a testament to how it supports investment partners. We look forward to continued collaboration to ensure we are always evolving and improving the patient and provider experience. Together, we are innovating to advance health equity, expand access among marginalized populations, and ultimately end cancer as we know it.”

As OSF HealthCare looks to transform health care by tapping its own Mission Partners (employees), it has chosen an outside partner, High Alpha Innovation, to help rapidly advance ideas from exploration to implementation or commercialization within and outside the health system.

High Alpha Innovation, an Indianapolis, Indiana-based venture studio, has years of experience in partnering to build startup companies around new software ideas and products. The partnership will speed development of new health tech companies with solutions that can help OSF HealthCare and other health care systems. The OSF Innovation Studio will collaborate with High Alpha Innovation on ideas that are endorsed by OSF HealthCare leaders as those that can transform health care by solving some of its most complex problems.

The OSF Innovation Studio already has 20 ideas in various stages of the development phase, including an app to help pre-surgical planning for patients with medical implants.

“We chose High Alpha Innovation because their approach allows us to benefit from the speed and learning agility of a startup, the knowledge and scale of a large organization, and the experience of a high-growth organization in creating companies,” explained Brent Cross, director of Transformational Innovation & Commercialization at OSF Innovation. “

 “With High Alpha Innovation’s venture studio playbook, we can launch new companies and products that can be scaled to meet the needs of OSF HealthCare and deliver value to the broader health care ecosystem.”

“The OSF team is leading the charge to innovate in health care and ultimately creating value both community-wide and around the world. As we approach focus areas together, like talent scarcity, patient navigation, health care in the home and modernizing enterprise tools, we believe that a ‘shark-tank’ approach to building new companies allows us to optimize resources, explore new markets and pursue transformative ideas,” said High Alpha Innovation Managing Director Matt Brady.  “By launching startups, OSF can drive the largest amount of value in the shortest amount of time."

High Alpha Innovation uses a 12-week ideation process — culminating in a Sprint Week— to select the best ideas to present to OSF leaders for investment to further develop and scale, ultimately gaining conviction to launch a startup that could also attract outside investors. 

OSF Ventures has launched its third capital investment fund, the largest since it initiated this program in 2016. The $100 million fund will be used to continue a strategy that links investments to key priorities of improved patient care, outcomes and greater operational efficiency. The third fund brings total assets under management in the venture program to $250 million.

OSF Ventures is part of the Innovation strategy of OSF HealthCare, a 15-hospital system in Illinois and Michigan. Investments are focused on digital solutions, tech-enabled services and medical technology, including medical devices, diagnostics and therapeutics.

The corporate investment arm of OSF HealthCare has made 26 direct investments to-date, plus it has invested in three health care-focused venture capital funds. Of the direct investments, the program has experienced nine successful exits, and today manages an active portfolio of 17 companies.

 Stan Lynall, vice president of Venture Investments, and his seven-person team have worked at an astounding pace, even during the pandemic. Since launching its first venture capital fund, the OSF Ventures team has vetted close to 1,500 opportunities.  “Our actual hands-on use in piloting the technology, or collaborating in other ways, is what we value in the process. This allows us to provide meaningful feedback that results in our portfolio companies developing successful solutions that are really valuable to our patient base,” said Lynall.

Managing the digital transformation in health care and integrating products and solutions into clinical operations requires executive and clinical leaders to be engaged. Lynall stressed, “We are fortunate to have leaders who are highly committed to Innovation at OSF HealthCare.”

An example of a very successful clinical integration involved a collaboration that led OSF HealthCare to pilot and then fully implement SilverCloud, a behavioral health platform with online and app-based modules to help individuals dealing with mild to moderate stress, anxiety, and depression. OSF was an early adopter and within three years, the number of people benefitting from enrolling has expanded to 7,000.

Michelle Conger, chief strategy officer and CEO of OSF OnCall Digital Health, is an Innovation champion.

“Entrepreneurs appreciate early adoption of their technology and we value having access to the best, cutting edge solutions,” said Conger. “For example, we had a head start in the early days of the pandemic, because we had already vetted solutions and had strategically planned for implementing several of the new communication tools we deployed, albeit at an accelerated pace. We were prepared because of our long-range Innovation plan, including important investments and collaborations through OSF Ventures.”

OSF HealthCare is focused on transforming health care through innovation with advancements in big data, the medical internet of things, health equity, social determinants of health, genomics and precision medicine, along with next-generation primary care and radical efficiency. Expanding investment in start-ups with a specific focus and providing mentorship and feedback to partners through OSF Ventures is a key component of the strategy to advance those efforts.

The corporate investment arm of OSF HealthCare joined an extended round of funding, that increased overall investment to the $25 million level. OSF Ventures joins new investors: The American Cancer Society’s venture capital fund, BrightEdge, and the Citi Impact Fund. Existing investor Sanara Capital, Sanara Ventures’ follow-on fund, also participated.

The round, led by Providence Ventures, also included new investors Almeda Ventures, Bridges Israel, Discount Capital, and UnityPoint Health Ventures. Existing investors Accelmed, and Triventures also joined in the latest financing.

TailorMed is focused on ensuring patients get the care they need in a difficult financial environment. TailorMed’s financial navigation platform automates the processes of identifying financially at-risk patients, matching and enrolling them in funding programs such as co-pay assistance, replacement drug programs, government subsidies, community and state resources, assistance from disease-specific foundations, and programs that support patients with their living expenses.

“It’s exciting to see a health system with the reputation of OSF HealthCare recognizing the value of a platform that gives health care providers more tools to help more patients avoid crippling medical debt,” said Srulik Dvorsky, CEO and co-founder of TailorMed. Medical debt is the single largest kind of debt owed to collection agencies in the U.S., according to a recent study in the Journal of the American Medical Association (JAMA). It has reached a total of $140 billion, twice as much as previously thought and yet the data does not cover the period that included the COVID-19 pandemic.

Dvorsky co-founded TailorMed on the premise that no one should have to abandon treatment that could save their life because of their inability to pay. He points to research that showed even among cancer patients with insurance,16% quit their treatment plans because they could not afford life-saving chemotherapy drugs, and patients with higher copayments were 42% more likely to skip treatment.

Mayank Taneja, director of Venture Investments, says the Ventures team at OSF HealthCare believes the TailorMed financial navigation platform is superior to what competitors offer because it includes access to resources not only for people with cancer, but for those with other chronic diseases and conditions as well.

TailorMed’s predictive analytic capabilities leverage electronic medical records to reveal patients with the highest financial vulnerability. Financial navigators can then proactively match patients with resources early on to reduce their out-of-pocket treatment costs. This early intervention can help patients avoid dropping out of treatment before it’s completed because of financial worries.

Hospital systems can also benefit by incurring less bad debt, freeing up resources to invest in operations and offer additional options to access care.

OSF Ventures joined a $43 million Series B investment in Current Health, provider of a remote care management platform that can empower health systems to monitor and manage patient care at home – thereby shortening patient hospital stays, reducing readmission rates and delivering better patient outcomes.

OSF Ventures, the corporate investment arm of OSF HealthCare, joins the round led by Northpond Ventures, with additional financing from LRV Health, Section 32, Elements Health Ventures and existing investors. The funding comes on the heels of Current Health 3,000%+ growth in year-over-year revenue, making them one of the fastest growing health care companies.

The company provides a single point of insight into patient health outside the hospital, ingesting data from hundreds of remote monitoring devices – along with patient-reported data and electronic medical record data – to identify and predict the onset and progression of disease. Current Health’s physician-led virtual command center provides 24/7 care management capability and seamlessly integrates with a range of in-home healthcare services, such as blood tests, durable medical equipment (DME), and meal delivery – providing a single, integrated solution across the care continuum.

“We were impressed with Current Health’s breadth of options for supporting patients at home,” said Stan Lynall, vice president, Venture Investments at OSF HealthCare. “We know Current Health is going to fill a significant market demand as hospital systems make the transition to supporting more patients at home. The shift toward at-home care is increasingly important among rural communities needing to implement safe, secure and easy-to-use telehealth solutions as rural hospitals strive to provide expert care with limited resources.”

In 2020, Current Health built on its ability to identify and predict the onset of disease by launching Community by Current Health, a research initiative aimed at building the largest longitudinal health at-home dataset. It also launched a partnership with the research arm of the U.S. Department of Health and Human Services to identify signs of early deterioration due to COVID-19 and predict disease severity to help inform clinical treatment.

“We are excited OSF HealthCare has given Current Health a vote of confidence as the technology partner to help health systems transform their care delivery models,” said Chris McCann, CEO and co-founder, Current Health. “Investment by OSF Ventures is further validation that we’ve developed an end-to-end solution that meets the needs of care teams and their patients by providing the glue that enables safer health care at home.”

Current Health continues to set itself apart in the virtual care space by including solutions such as options for medication and even meal delivery. Its goal is to help care providers treat patients preventively and at the earliest point, allowing them to live healthier and longer lives.

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“We really saw value in a company that is filling the need for mandated special education services required for 14% of all public school children across the country,” said Stan Lynall, vice president for OSF Venture Investments. “In many cases, video visits supplement what the schools are able to provide through their own, school-based therapists.” Lynall added,” We are excited to partner with DotCom Therapy as they expand their service offerings to health care systems.”

DotCom Therapy provides services to more than 250 schools across the U.S. It offers mental health counseling, speech therapy, occupational therapy, and behavioral health services. OSF Ventures joins New Capital Partners in the Series A funding to grow DCT’s customer base and scale their services into health care systems such as Peoria-Illinois-based OSF HealthCare which will launch a pilot using Dotcom Therapy for children who are on the autism spectrum.

Cheryl Crowe, vice president for Behavioral Health at OSF HealthCare says DotCom Therapy will provide support for children who have been diagnosed with Autism Spectrum Disorder (ASD), a neurological and developmental disorder that begins in early childhood.The pilot will be coordinated through OSF Saint Francis Medical Center and Children’s Hospital of Illinois in Peoria.

“A DotCom Board Certified Behavior Analyst will provide services to advance behavioral modification, social and emotional control, and parent education,” according to Crowe. “We will also utilize a Licensed Clinical Social Worker who has experience working with individuals with Autism Spectrum Disorder. They will be working with both the children and their families on coping and other important life skills.”

With so many children learning at home, Crowe says now is an ideal time to implement a web-based therapy strategy.

“This will enable us to provide children with a comfortable setting with people they trust, plus research shows children with ASD are fascinated by computers and benefit from tech-based intervention.” She continued, “Video visits will also allow therapists to educate parents and trouble-shoot situations in real-time to address communication deficits secondary to autism in a functional, flexible way." 

"We’re excited to have OSF as a partner who shares our company values of trust, support, and respect,” said DotCom Therapy’s Rachel Robinson. “The financial support and advisory role OSF Ventures offers is critically important to our success. Additionally, the Peoria-based pilot will show us how our DotCom therapists can work alongside other health care providers to coordinate comprehensive support to patients and their families.”

The OSF pilot will also support the Autism Collective, a collaboration of Easter Seals Central Illinois and OSF Children’s Hospital of Illinois. The Collective has a goal of connecting families with the most appropriate services to meet their needs and to ensure a coordinated, cohesive, and customized plan of care.

Middle ear infections are the leading cause of hearing loss, surgery and antibiotic use, especially in children who are misdiagnosed up to half of the time using the current technology. Knowing there is a need for better tools to diagnose and treat ear infections, OSF Ventures is joining a $5.2 million Series A investment in Champaign, Illinois based PhotoniCare Inc. and its TOMi™ Scope for non-invasive imaging of the middle ear.

Three other venture capital firms joined OSF Ventures in the investment round including i2E Ventures, Sony Corporation of America and Dreampact Ventures. The money will be used for further development of AI technology, and to ramp up sales, customer support, and provider reimbursement.

PhotoniCare recently received Food and Drug Administration (FDA) approval for the TOMi hand-held medical device. Since 2013, the medical device start-up has been developing technology invented at the University of Illinois Urbana-Champaign by the company's founders. Its new imager uses a novel application of light wave technology known as Optical Coherence Tomography (OCT).

The hand-held device allows physicians, for the first time, to directly visualize fluid in the middle ear where ear infections reside. What’s most impressive – the imager works even in the presence of wax – providing objective data for a diagnosis and treatment course. Clinicians who have used the imager say it will revolutionize diagnosis and treatment of inner ear infections.

“Ear pain and concerns about hearing are one of the most common reasons parents take their children to the doctor. But, for decades, until now, technology to see inside the ear canal has not improved,” according to Mayank Taneja, Director of Venture Investments, OSF Ventures.

He added, “Surgery and antibiotics are not always needed and we’re excited the TOMi Scope could reduce unnecessary care and costs for patients and families.” Taneja points out the investment also fits with OSF Ventures’ priorities of improving patient outcomes, enhancing patient experience and reducing the cost of health care.

Children can suffer from recurring ear infections for six to 12 months before they are referred to an ENT specialist, and are often prescribed increasingly potent antibiotics during this time. More than one million tube surgeries to reduce fluid and pressure in the inner ear are performed in the US alone every year.

Melinda Cooling, OSF Vice President Advance Practice Providers/Chief Clinician Executive Saint Gabriel Digital Health said OSF HealthCare will pilot the digitally enhanced otoscope at a few of its OSF Urgo urgent care locations to evaluate the equipment and workflow.“This could be a game changer in improving our diagnosis and treatment so we’re excited to partner with PhotoniCare,” Cooling said. “The device also has a video screen and can connect to other devices for easy viewing that will let providers visually show patients and parents of small children the extent of the problem and provide education about the best remedies.”

PhotoniCare co-founder & CEO Ryan Shelton is equally excited by the support from OSF HealthCare.

“At PhotoniCare we set out to solve the massive problem of frequent misdiagnosis of middle ear infections, and the overuse of antibiotics and referrals to surgery in children” said Shelton. “We are excited to have the support of OSF Ventures which has a reputation for successful investments and we appreciate the partnership that will pilot use of the TOMi Scope which will provide us with valuable feedback.”

OSF Ventures joins LRVHealth, MemorialCare Innovation Fund, UnityPoint Health Ventures, B Capital Group and ACT Venture Fund in the latest investment round. The investment fits with OSF HealthCare’s strategy of financially and operationally supporting opportunities that improve patient outcomes, enhance patient experience and reduce the cost of health care.

“We also invest strategically through comprehensive collaboration, which is the approach we’ve taken with SilverCloud,” according to Stan Lynall, vice president for OSF Venture Investments. In 2018, OSF HealthCare became the first US health care system to offer free open enrollment to SilverCloud’s online cognitive behavioral health therapy for adults in regions served by OSF but without a requirement that users be current patients of the health system.

The SilverCloud platform is HIPAA compliant and is available via handheld device, computer or laptop. It is an anonymous, secure and interactive platform that helps people manage the symptoms of depression, including anxiety and stress.

“OSF HealthCare was an early believer in our evidence-based approach and continues to provide collaboration and support. SilverCloud has been able to demonstrate that our solutions provide an equivalence to more traditional methods of mental health care,” said SilverCloud Health CEO Ken Cahill.

SilverCloud’s solution for moderate depression, anxiety and stress was piloted and eventually expanded for open enrollment with product updates and enhancements made to the platform to align with feedback from behavioral health professionals who monitor the platform and interact with users when additional individual support is needed. SilverCloud platform wide results show up to 65 percent of users have significantly decreased depression and anxiety symptoms, and up to a 91 percent reduction in care delivery costs compared to face-to-face therapy.

“The key that separates SilverCloud from other applications is that it offers the user with an integrated supporter,” according to OSF HealthCare Behavioral Health Manager Luke Raymond. “The platform has been clinically validated as a viable resource to deliver cognitive behavioral therapy content, and we also have a background person who will provide periodic check-ins and reviews and help you if you need connection with a live resource.”

He added, “SilverCloud Health responded rapidly to our need to help our front-line health care workers dealing with the stressors of the COVID-19 pandemic and added a specific program for them, which was an important resource to support our employees.”

Lynall is impressed with the SilverCloud leadership team which includes top executives and co-creators who are global leaders in online behavior therapy tools and digital specialists who have grown the platform to include more than 30 effective online mental health interventions.

“SilverCloud Health is filling a void left by a lack of mental health professionals in the U.S. and globally. OSF Ventures is excited to back SilverCloud Health as it works to create tools patients are embracing to lead happier, more successful lives,” said Lynall.

Dr. Teresa Riech, an emergency department physician at OSF HealthCare Saint Francis Medical Center said since the pilot began in February, she has been impressed with the ease of use and improvement in time to infusion with the hand-held, compact device. Dr. Riech said the LifeFlow device is helping the hospital meet its goal of achieving national benchmarks for fluid resuscitation in children who develop sepsis.

Sepsis is a common, life-threatening illness that affects more than 75,000 children in the U.S. each year. It's also the leading cause of pediatric mortality worldwide.

The device is a product of Durham, North Carolina-based 410 Medical, which recently closed on Series A financing of $8 million. OSF Ventures, the investment arm of OSF HealthCare was part of the latest round of financing for the company which plans to use investment dollars to obtain additional clinical data and boost its sales and marketing staff.

Stan Lynall, vice president of Venture Investments for OSF Ventures, says the young company has a lot of potential, particularly with plans to expand use in pre-hospital emergency transport. The device is ideal because it is compact and easy to use with patients who need time-sensitive fluid resuscitation. This is additionally important for trauma patients who need rapid infusion of IV fluids to prevent organ failure and even death.

"LifeFlow has applicability for trauma cases both in the emergency room and as part of our OSF Life Flight operations. We have introduced the technology to our Life Flight administrators for their evaluation and potential use," said Lynall. Lynall points out 410 Medical has other helicopter transport services across the country that are using the LifeFlow device.

The company's initial focus has been on promoting the device to treat pediatric septic shock and it is currently in use by 35 hospital networks. In fact, 410 Medical takes its name from the calculation of fluid delivery goals – 40 ml within 10 minutes.

"We strive to be compassionate, intelligent, and science-and-outcome-driven partners in the shared goal of providing the best care to patients," said CEO Kyle Chenet. That approach fits with the strategy of OSF Ventures which invests in companies that provide technology or services that improve patient care and outcomes while also having the potential to reduce costs.

According to Chenet, 410 Medical also has plans to bring a rapid blood infuser device to market next year.The device is a product of Durham, North Carolina-based 410 Medical, which recently closed on Series A financing of $8 million. OSF Ventures, the investment arm of OSF HealthCare was part of the latest round of financing for the company which plans to use investment dollars to obtain additional clinical data and boost its sales and marketing staff.

The additional funding will support efforts to hire top talent as the start-up expands sales and further develops its cloud-based SocialScape™ platform.

Using advanced analytics, proprietary algorithms, and machine learning tools, Socially Determined uses a variety of data sets, including commercial and government data, coupled with information from insurers and health systems to identify patients’ social risk and better target existing interventions. Additionally, the start-up offers evidence-based strategies that could include collaborative approaches and community-based resources.

“We are proud to partner with OSF HealthCare and provide analytic tools and insights to support their Mission and their communities,” said Trenor Williams, MD, CEO and co-founder of Socially Determined.

“Our investment strategy is to always look at ways to reduce costs and improve patient outcomes,” according to Stan Lynall, vice president for OSF Venture Investments.

Sarah de Ramirez, vice president and chief medical officer for Clinical Innovation at OSF HealthCare says Socially Determined will eventually help predict socially vulnerable patients for possible intervention before they face a crisis that could significantly impact their health.

The investor group supporting Socially Determined includes another OSF Innovation partner, LRVHealth, along with ProMedica, 3M, and Ziegler Link-Age Funds.

The BrightWater stent family, called the ConvertX® Stent Systems, allow physicians to treat patients suffering from severe obstructions of the urinary tract and bile ducts with only one procedure instead of the usual two procedures when conventional devises are used. BrightWater achieved FDA clearance for both stent systems that address complicated blockages typically caused by cancer.

In addition to improving patient care, BrightWater founder Dr. Bob Smouse, believes the BrightWater products could reduce costs to the health care industry by $1 billion annually. Dr. Smouse credits OSF Ventures and OSF HealthCare as being a significant partner in his Company’s journey to success. “OSF has emerged as a leader in health care innovation with a view towards supporting technologies that can improve patient care and outcomes” he states.

“We were very excited to be able to financially, operationally and clinically support Dr. Smouse’s work given his long track record of excellent patient care at OSF HealthCare Saint Francis Medical Center,” said OSF Ventures Vice President Stan Lynall. “Making BrightWater Medical products available to a greatly expanded patient population has the potential to positively impact medicine and patient outcomes in the U.S. and beyond.”

Merit Medical’s Chairman and CEO, Fred P. Lampropoulos who believes in putting patient needs first, aligned closely with Dr. Smouse, a former interventional radiologist at OSF HealthCare Saint Francis Medical Center and a professor at OSF Innovation partner, the University of Illinois College of Medicine in Peoria (UICOMP).

“The ConvertX® system is designed to reduce multiple visits to the hospital, saving patients the risk and discomfort of a second interventional procedure while freeing up additional surgical facilities for other critical procedures,” said Lampropoulos. “Merit Medical has the ability to help more patients with its global reach. We believe our ability to align this product with our existing sales force calling on interventional radiologists, as well as growth in markets outside the U.S., will allow for future expansion.”

The Central Illinois Angels, a non-profit organization of investors looking to help entrepreneurs with capital and strategic advice, was also an early believer and financial supporter of the company.

“It is an honor to work with OSF to bring the ConvertX to patients. When a hospital system like OSF invests in a medical product, it serves as validation that the product has potential.” Dr. Smouse explained. “In our case, OSF Ventures carefully vetted ConvertX and BrightWater for four months, evaluating the technology and benefit it would have to patients in need. They came back with two thumbs up.”

Peoria is also poised to be the heart of a Midwestern health and wellness innovation engine, helping start-ups like his through OSF Innovation the overall umbrella for innovation and improvement which includes for OSF Ventures, the Jump Simulation and Education Center and its partnership with researchers from the University of Illinois system and the Chicago-based Discovery Partners Institute, the Illinois Innovation Network and the planned downtown Peoria innovation hub.

OSF Ventures specializes in venture optimization, partnering financially and operationally in companies that improve patient outcomes and reduce costs to health care systems. OSF Ventures is a division of OSF HealthCare. More at www.osfventures.org

OSF HealthCare, headquartered in Peoria, is owned and operated by The Sisters of the Third Order of St. Francis, and consists of nearly 21,000 employees in 126 locations, including 13 hospitals, 11 Centers for Health and 15 OSF PromptCares throughout Illinois and Michigan. OSF Innovation, ranked among the top 10 innovation centers in the country, is located in Jump Trading Simulation & Education Center. Launched in 2016, OSF Innovation is a multidisciplinary innovation center focused on internal and external innovation to solve the largest health care challenges. More at osfhealthcare.org/innovation and www.osfhealthcare.org

Merit Medical, founded in 1987, Merit Medical Systems, Inc. is engaged in the development, manufacture and distribution of proprietary disposable medical devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy. Merit serves client hospitals worldwide with a domestic and international sales force and clinical support team totaling in excess of 300 individuals. Merit employs approximately 6,300 people worldwide with facilities in South Jordan, Utah; Pearland, Texas; Richmond, Virginia; Malvern, Pennsylvania; Rockland, Massachusetts; San Jose and Aliso Viejo, California; Maastricht and Venlo, The Netherlands; Paris, France; Galway, Ireland; Beijing, China; Tijuana, Mexico; Joinville, Brazil; Markham, Ontario, Canada; Melbourne, Australia; Tokyo, Japan; Reading, United Kingdom; Johannesburg, South Africa; and Singapore. Learn more at https://www.merit.com/

Smouse founded BrightWater Medical in Peoria, Illinois to develop the ConvertX® stent, led by financial backing from OSF Ventures, the investment arm OSF HealthCare. The BrightWater ConvertX® Stent Systems allows physicians to treat patients suffering from severe obstructions of the urinary tract and bile ducts with only one procedure instead of the usual two procedures with conventional devices. It will eventually be adapted for use in children. The ConvertX®, was successfully used in a patient for the first time in 2017 at OSF HealthCare Saint Francis Medical Center in Peoria where Dr. Smouse had been practicing for 20 years.

OSF Ventures was the only health care-backed venture capital group to invest and it led a first-round, $5.2 million dollar investment in May 2016 due to its potential to improve patient outcomes and experiences. Smouse says that financial backing was considered ‘smart money’ by BrightWater Medical and other investors.

“That carries a lot of weight. That means when we go out there and we’re raising funds and we tell people that OSF HealthCare did the vetting, looked at it, became an investor – the next question we get is, ‘Are the hospitals using it?’ And, the answer is ‘Yes, they are using it.’ As a matter of fact, OSF Saint Francis is one of the larger users of the ConvertX,” said Smouse. 

OSF Vice President for Venture Investments Stan Lynall said it didn’t take long to see the value of making the investment in BrightWater Medical.

“While ConvertX product significantly improved on very dated technology going back to the 70s, Dr. Smouse was very convincing and has now been proven correct. The Brightwater product significantly improved patient care and the economics to the hospital system work as well.” 

Smouse had surveyed doctors at OSF Saint Francis and learned 80% would be interested in using his device. Dr. Smouse estimates it has the potential to save hospital systems across the U.S. one billion dollars a year.

Smouse recently sold BrightWater to Merit Medical Systems, Inc. a leading manufacturer and marketer of disposal devices particularly in oncology, radiology, cardiology, critical care and endoscopy. The transaction consists of a $35 million upfront payment and additional payments of up to $15 million if sales goals are met.

This is only one of several examples of medical innovation that is thriving in the Midwest, and in Illinois in particular. You might not typically think of the heartland as a place for medical start-ups but Dr. Smouse says the middle of the country has a good reputation among ventures investors.

“It’s the kind of place where a hand shake is as good as a contract and that says a lot. It’s the kind of place too where it’s about family, right?” He suggests, “If the device doesn’t help patients, that’s what they’re all about. And the OSF mission is perfect for that.” 

OSF HealthCare has a mission of serving with the greatest care and love. Dr. Smouse thinks Peoria is also poised to be the heart of a Midwestern innovation engine, helping start-ups like his through OSF Ventures, the Jump Simulation and Education Center in Peoria and it’s partnership with researchers from the University of Illinois system and a strong connection with the Illinois Innovation Network and a developing downtown Peoria Innovation Hub.

“All of that is just ripe for a good ecosystem for biotech, medical tech, pharma tech development without a doubt. It’s early, there’s no doubt, but you have the component pieces here.” 

The recent sale to a much larger company is a success story for Smouse’s BrightWater Medical and for his partnership with OSF Ventures. Smouse found what he needed – input from not only physicians but practitioners who handle coding for insurance reimbursement to make sure patients would not have to pay high out-of-pocket expenses. With that, Smouse and his small executive team were able to grow his “Two Men and A Truck” operation as he refers to the early days of BrightWater, to a company worth millions that will eventually help patients across continents.

Dr. Smouse will remain with Merit Medical Systems indefinitely as a consultant to work with a 2,000-plus strong sales team to help capture 60% of an estimated international sales market for his various stents. He calls the ConvertX and the family of related devices his children. So, he’s not yet ready to turn his back on them completely while, as he puts it, “they’re still in college.”

“I will be involved in the device at least for the near term. As it grows up and starts to work its way through college to get that degree and go out globally across the world,” he shared. 

OSF Ventures, the investment arm of OSF HealthCare, is among investors in the latest Series B funding round to help Redwood, California-based Exo Imaging achieve FDA approval and commercially develop its handheld ultrasound platform. The device can be used for the entire body—from looking at 3D images of the heart and other organs to imaging a person’s vascular system or musculoskeletal features.One of the major investors in Exo Imaging is Intel which has microchip technology that could be used in development of the ultrasound platform capable of penetration depth and exceptional fidelity, 3D imaging that still fits in the palm of your hand. “Image quality is so important and Intel’s involvement was a significant indicator to us that this is going to be successful technology,” according to Stan Lynall, vice president of Venture Investments for OSF HealthCare.

Exo’s universal imager is being designed specifically with convenient patient care and cost savings in mind which is why it was appealing to OSF Ventures which has a strategic investment focus on those two areas. It offers sharper images but at a much more affordable price than current imaging technology. Lynall stresses this advancement could transform the way OSF clinicians offer care by improving their ability to diagnose and provide the most effective treatment for a variety of OSF patients.

In the course of vetting Exo Imaging, the Ventures team consulted with physicians at the University of Illinois College of Medicine in Peoria (UICOMP) who indicated ultrasound is being deployed in many cases as a less-costly and non-invasive but effective imaging tool. “There is an emerging trend of ultrasound being more widely accepted among a variety of disciplines and more medical students are being taught to read and interpret results as a consequence of this changing view,” said Lynall.

“Having OSF Healthcare on board as an investor is invaluable in providing our engineers with an opportunity for testing and feedback of our Exo Ultrasound Platform,” said Sandeep Akkaraju, CEO and president at Exo.

Exo plans to add a layer of artificial intelligence that’ll offer support for users to make quicker, more accurate life-saving decisions on behalf of patients.

Three and a half years following its first investment, OSF Ventures has directly invested in 15 companies and is preparing to close on investment in another. Additionally, investments in two venture capital funds – Ascension Ventures and LRV Health round out the initial OSF Ventures portfolio.

“Our venture program is strategically focused. We are only investing in technologies that improve patient care and outcomes, or reduce costs to our health care system,” said Stan Lynall, vice president of Venture Investments for OSF Ventures. The approach includes looking for opportunities to collaborate with start-ups for deployment of their technology at OSF HealthCare.

“OSF Ventures is an integral part of our Innovation strategy,” according to Michelle Conger, chief strategy officer for OSF HealthCare.

One example of a strategic investment includes Regroup, a Chicago-based start-up that provides telemedicine solutions to eradicate mental healthcare shortages across the country. A pilot program using the platform was launched at OSF HealthCare Saint Elizabeth Medical Center in Ottawa, Illinois in the fall of 2017. It allowed most patients in need of mental health care to be seen within two weeks and 93.5% of patients reported they felt seen and heard by their provider during the live video appointment. Regroup is now being rolled out to other communities through primary care providers.

“It has been a pleasure to work with OSF Ventures, which is a key member of our investment syndicate,” said David Cohn, founder and CEO of Regroup. He observed, “As an early adopter, OSF HealthCare provided us valuable insights as we developed our technology and service offerings.”

Lynall and his four-person team have been busy since OSF HealthCare launched its first $75 million dollar venture fund in 2016 as part of its overall innovation strategy. The small group has vetted more than 700 medical startup companies at early or mid-stage development. The team includes members with business, clinical and strong analytical skills as well as venture experience.

As the OSF Ventures brand has grown across the country, an ever-increasing list of startups seek OSF investment because of the access to clinical expertise and ability to test effectiveness and usability in a health care setting. As Lynall points out, entrepreneurs appreciate having early adopters of their technology.

The corporate investment arm of OSF HealthCare has decided to strategically invest in the Series B funding to speed expanded use of its flagship product, the Paradigm Cancer Diagnostic PCDx ™ test. The breakthrough technology assists physicians in targeting each patient's specific tumor pathways and genomic changes in aggressive or complicated cancers within three to five business days.

Paradigm also recently published results of a study showing the test’s unique ability to get comprehensive, actionable results from tumors so small, they previously could not be tested for a definitive cancer diagnosis and treatment protocol.

OSF Ventures joined six other venture groups in the Paradigm Diagnostics investment opportunity. Paradigm’s newly upgraded PCDx test includes next generation sequencing that evaluates gene mutations in a person’s DNA to identify the best evidence-based treatments to improve survival.

The test results provided to doctors are matched to FDA approved therapies and standards of care in the most recent National Comprehensive Cancer Network Guidelines as well as clinical trial options. Novel therapies are ranked in the report based on the level of evidence that they improve patient outcomes.

“Paradigm’s focus on rapidly helping the patient and oncologist find the best solutions, especially in our network, dovetails nicely with our mission to help accelerate innovative companies that enhance the quality of care,” said Stan Lynall, vice president of OSF Ventures.

Unique, Cutting Edge Technology

Lynall believes Paradigm Diagnostics offers cutting edge technology unlike competitors.

“I see as a real differentiator the company’s ability to provide results of cancer genomic profiling and therapeutic information in five business days or less to better support patient care. When you put that in the context of late-stage cancer, that’s important,” according to Lynall. Lynall and OSF HealthCare oncologists who consulted with the OSF Ventures team also believe the ability to test a tissue sample size as small as a grain of rice, using a single microscope slide or fine needle aspirate, makes Paradigm a leader in the industry.

David Mallery is co-founder, chairman and CEO of Paradigm Diagnostics. He helped lead efforts to support the biospecimen and clinical data collection for the National Cancer Institutes’ flagship project – The Cancer Genome Atlas (TCGA), which comprehensively catalogued the molecular drivers of cancer to open a new era of discovery to better prevent, diagnose and treat all forms of the disease.

Mallery says having a health care system in the mix with other venture capital firms is significant.

“OSF Ventures’ backing represents support from one of the most highly respected health systems in the country,” said Mallery. He added, “We are excited to have the clinical expertise and financial support to help expand the use of our revolutionary diagnostic test that offers quick results with targeted treatment recommendations. This advancement offers hope to many more late-stage cancer patients who’ve had to experience a devastating diagnosis.”

As a strategic investor in LRVHealth’s fourth fund, OSF HealthCare will benefit from access to early-stage companies that have been identified and vetted through a vast network that reaches across the healthcare continuum in the U.S. These companies are often in the initial phases of developing solutions to enhance patient experiences, improve outcomes, and reduce costs.

“Tapping into this network will help augment our portfolio with companies at an earlier stage of development than we focus on with direct investments,” said Stan Lynall, vice president of OSF Venture Investments.

OSF Ventures continues to seek direct investment opportunities with medical startups at mid-stage development around the U.S. It also partners with incubators, accelerators, and universities to help develop, test, pilot, and implement solutions throughout the health care system.

This is OSF’s second limited partner investment in a venture capital fund managed outside of the organization. In December of 2016, OSF Ventures announced a limited partner investment in Ascension Ventures. The subsidiary of the nation’s largest Catholic and nonprofit health system researches hundreds of health care companies annually for possible investment and shares similar values and focus as OSF HealthCare.

Likewise, LRVHealth focuses on investment themes that align with OSF’s beliefs about certain industry realities, including the gradual shift to value-based care and the importance of new technologies to enable that transformation.

“Consumerism in healthcare is quickly evolving and consumers are demanding a different experience from their health care providers,” Lynall added. “As another set of eyes and ears that’s looking for the best innovation in the digital health ecosystem, LRVHealth will enable us to be ahead of the curve in meeting and exceeding these new expectations."

Reducing health care costs is also aligned with OSF HealthCare’s mission. “We invested in LRVHealth because its team truly believes reducing cost is tremendously important for clinical providers to remain financially viable and able to serve their communities,” according to Lynall.

“All of the health systems within the LRVHealth network are forward-looking organizations that are focused on identifying and nurturing innovation to help address the healthcare industry’s largest challenges – and OSF fits that mold perfectly,” said Tripp Peake, general partner at LRVHealth.

He added, “OSF HealthCare is recognized as a top-rated U.S. system overall and Becker’s Hospital Review has identified OSF as a leader in healthcare system innovation programs. Partnering closely with the OSF Ventures and OSF Innovation teams gives our network another conduit to people who understand the healthcare system best and are already looking for impactful ways to improve care and control costs.”

LRVHealth’s strategic investors now include 11 health care systems and the Innovation Institute, a for-profit venture owned by six non-profit hospital systems that operate in 20 states. The institute invests in and incubates healthcare startups, connecting them with doctors and other healthcare companies.

Additionally, LRVHealth has attracted a distinguished group of advisors consisting of entrepreneurs, health care executives, leading clinicians, policy experts, and other industry insiders. Most recently, the firm welcomed former ONC chief and assistant secretary at HHS, Dr. Karen DeSalvo, to its team of executive advisors.

According to Lynall, “the firm has compiled a team and network that reaches all corners of the healthcare system. Being able to call on experts in a given area at any time gives us extreme confidence in LRVHealth’s ability to find and nurture the most promising young digital health startups.”

Several individuals within OSF will interact with LRVHealth and its strategic network to help identify and guide investments that further innovation in healthcare. In turn, the advisor group will be a resource as OSF HealthCare moves from a fee for service to value-based, coordinated care that emphasizes prevention.

The financing will support the commercialization of the Cordella™ Heart Failure System and clinical development of the Cordella™ Pulmonary Artery Sensor, including FDA Premarket Approval.

Founded in Peoria, Illinois, Endotronix developed a wireless sensor that is implanted into an artery to monitor pulmonary artery pressure and a patient management solution to improve patient care. Clinical information gathered from the sensor is securely transmitted to a patient’s doctor in real-time via a handheld reader, which allows a patient greater mobility. The pressure data is an early indicator of worsening heart failure, and having real-time access to it allows doctors to better manage advanced heart failure.

Nearly 6 million Americans live with heart failure. It is the leading cause of hospitalization for people over 65 with annual treatment costs exceeding $31 billion. Clinical studies have demonstrated that pulmonary artery pressure-guided management can reduce heart failure-related hospitalizations and reduce mortality.
 

“This research is exciting as the sensor technology is smaller and more portable, allowing for more frequent pressure monitoring. It also looks to couple an Internet-based home disease management system with the pulmonary artery pressure sensor data,” said Barry Clemson, M.D., OSF HealthCare Ministry Heart Failure Medical Director. “This device has the potential to greatly impact the care of patients with chronic heart failure and improve their quality of life.”

OSF Ventures invested in the series C round of financing for Endotronix in 2016, which enabled safety and feasibility studies for the implantable sensor.

“Our confidence in the Cordella™ Pulmonary Artery Sensor has only expanded as the Company and its technology has matured. We see this as a significant, emerging technology that has great potential for heart failure patients,” said Stan Lynall, Vice President of Venture Investments for OSF HealthCare.

The Series D investment round was led by LSP, investing from its LSP Health Economics Fund 2, and included Aperture Venture Partners, BioVentures Investors, Lumira Ventures, Seroba Life Sciences, SV Health Investors, Wanxiang Healthcare Investments, and an unnamed corporate strategic investor, in addition to OSF Ventures.

Millions of women in the U.S. and worldwide suffer from some form of pelvic floor dysfunction such as urinary incontinence. OSF Ventures is recognizing this epidemic with its latest investment in Renovia Inc.

Renovia is a Boston-based company dedicated to discovering and delivering first-line digital therapeutic and diagnostic devices to help women overcome these issues without undergoing a surgical procedure. The company’s first FDA-approved device helps women rehabilitate and train weak pelvic floor muscles for the treatment of stress, mixed and mild-moderate urgency incontinence.

“Pelvic floor muscle training is recognized as the most beneficial treatment for women who suffer from urinary incontinence,” said Jason Rodeghero, senior vice president, Occupational Health and Rehabilitation Services, OSF HealthCare. “However, studies indicate that about one-third of women presenting for evaluation of a pelvic floor disorder can’t properly perform basic pelvic floor muscle exercises.”

Renovia’s technology uses interactive visualization and real-time progress tracking, guiding women to correctly complete the pelvic floor movements.

“We’re excited to invest in a company working on a variety of products to positively impact this worldwide issue,” said Stan Lynall, vice president, Venture Investments, OSF HealthCare. “As the Renovia team continues this work, our investment sets the stage for ongoing clinical collaboration to address those suffering from pelvic floor health issues.”

OSF Ventures joined six other venture groups in the Renovia investment opportunity.

“I know I speak on behalf of everyone at Renovia when saying that we’re ecstatic to have the support of OSF Ventures as we work to develop a new standard of care for the treatment of urinary incontinence and then other pelvic floor disorders,” said Marc Beer, co-founder, chairman and chief executive officer, Renovia. “The ability to partner with a world-class integrated health network, like OSF HealthCare, creates unique clinical opportunities.”

Proceeds from the funding will be used to support Renovia’s clinical trials, product development pipeline, corporate development and future commercial launches. Lynall will be joining the Renovia board as an observer.

Garrett Vygantas, M.D., MBA, joins OSF Ventures, a part of OSF Innovation, as a Managing Director. He will partner with innovative health care companies seeking to make an impact in the provider-patient ecosystem.

With more than two decades of health care experience as a physician, investor and entrepreneur, Vygantas brings a broad spectrum of knowledge to OSF Ventures. He has worked in biopharmaceuticals, medical technology and diagnostics. He was the founding CEO of NewBridge Pharmaceuticals and was also an Entrepreneur-In-Residence and Investment Director at a leading life science venture capital firm. Most recently, Vygantas led health care investments at Jump Capital.

“He’s an experienced venture capitalist and as an M.D., he brings an extensive medicine and medical treatment knowledge base,” said Stan Lynall, Vice President of OSF Venture Investments.

A division of OSF HealthCare, OSF Ventures invests in and collaborates with start-up companies that have applicable health care technologies and devices that can benefit OSF in cost reduction and the improvement of patient outcomes.

“We are well aware of the transformation of health care and the migration to value-based and population health management environments. So, we are seeking new and better ways to serve patients and remain economically viable,” said Lynall. “Dr. Vygantas will further enhance our west coast presence, particularly in the Silicon Valley/San Francisco region, where he will be based, and where we already have partnerships and investments,” said Lynall.

Vygantas received his M.D. & MBA degrees from Georgetown University and completed his residency at the University of Pennsylvania. He is a Kauffman Fellow and serves on a variety of corporate and non-profit Boards.

OSF HealthCare, headquartered in Peoria, is owned and operated by The Sisters of the Third Order of St. Francis, and consists of more than 18,000 employees in 115 locations, including 11 hospitals throughout Illinois and Michigan. Its physician network employs more than 1,000 primary care, specialist physicians and advanced practice providers. More at www.osfhealthcare.org.

OSF Ventures specializes in venture optimization, partnering financially and operationally in companies that improve patient outcomes and reduce costs to health care systems. OSF Ventures is a division of OSF HealthCare. More at www.osfventures.org.

OSF Ventures recently signed a three-year agreement to be a corporate sponsor of Plug and Play’s program for Health and Wellness to help identify progressive technologies that could benefit the health care industry.

OSF is the second health care system to partner with this program and will join a handful of other sponsors to define health care needs that could be filled through innovative technology. Plug and Play then invites startups from all over the world to apply for its 12-week industry-specific innovation platform that includes potential investment, working space and mentorship to further develop their companies.

Sponsors help select startups to go through the health and wellness program and stay connected to them throughout the process.

“Our sponsorship of Plug and Play’s Health and Wellness program nets OSF direct access to the best health digital startups in the world, the ability to mentor those companies, decide which of those would be useful to our Ministry, partner with them collaboratively and ultimately be a venture investment candidate,” said Stan Lynall, Vice President of Ventures Investments for OSF Ventures.

The program ends with the graduation of the selected companies where they are better positioned to grow and seek venture investment support.

PayPal, Dropbox, Soundhound and Lending Club are among the many companies that are part of Plug and Play’s portfolio.

“We are excited to have OSF HealthCare join our Health Innovation Platform. Our relationship will help create a bridge between Silicon Valley and Peoria, IL for our health startups and we look forward to working together to foster health innovation,” says Saeed Amidi, Founder and CEO of Plug and Play.