General Catalyst earmarking $750M for healthcare investments
General Catalyst has raised $8 billion in new capital and is earmarking $750 million for healthcare investments, a spokesperson for the firm told Becker’s.
Hemant Taneja, General Catalyst’s CEO and managing director, said in an Oct. 24 post on the firm’s website that he has stated for years that the traditional venture capital model “does not best position founders to transform industries.”
“Transformations require ecosystems of companies to work together with uncommon collaboration — so we created the GC Transformation Flywheel to bridge innovators with adopters to achieve scale,” he said in the post. “Core to this model is our Health Assurance Transformation Company, which coalesces 15% of U.S. healthcare operations across hospital system partnerships, aiming to use technology to best serve patients.”
General Catalyst launched the Health Assurance Transformation Company, or HATCo, in October 2023, with former Intermountain CEO Marc Harrison, MD, leading the efforts.
In January, HATCo signed a nonbinding agreement to acquire Akron, Ohio-based Summa Health and transform the health system into a for-profit entity. The deal remains pending. If finalized, Summa Health will become a fully owned subsidiary of HATCo.
Dr. Harrison told Becker’s in January that the for-profit model is “how we transform the industry holistically.”
“It does not appear that traditional models, whether it’s conventional non-for-profit medicine or unconventional [private equity], is actually really changing the industry holistically, and I think it has to be both a good investment in doing the right thing and then we can make big changes,” he said.