As the health industry evolves to meet consumer expectations for better quality, lower-cost and more convenient health care options, the demand for technology-driven innovation is accelerating as is the level of interest and investment among stakeholders or all sorts.

Health systems and other institutional providers are playing a more active investment role in the commercialization of biomedical, digital health, and other important health care discoveries in order to remain competitive, secure their positions as industry leaders and generate growth opportunities. This more active role also affords their internal innovators (e.g., physicians and scientists) to play a meaningful role in accelerating the commercialization of home-grown discoveries that may otherwise be left in “the valley of death” between government-funded basic research and later stage, industry-funded commercialization. Drug and medical device manufacturers, venture capital, private equity firms, large donors and other investors are injecting significant capital into fueling research, development and commercialization of health care technology innovation. On the one hand, health care systems and providers welcome such external co-investors who bring sophisticated expertise in product and market research, technology innovation, valuation and strategy capabilities, as well as access to networks of potential co-investors. For such external co-investors, on the other hand, joining forces with health care institutions affords much needed access to the expertise and thought leadership of clinicians, scientists and health technology innovation; a ready‑made proving ground and “anchor customer” for the product; and the halo effect of the health care provider around the co-investor’s clinical care and research reputation. The theory and the hope is that the combined capital and the different, but complementary, expertise, experience and perspectives of such co‑investors provides a formula for financially successful innovation that is transformative and not merely disruptive.

As the speed of innovation accelerates, the regulatory framework is lagging behind; yet government agencies are highly interested and watching the sector closely. It is critical to proactively identify and manage regulatory risk considerations from the beginning and throughout the innovation investment lifecycle. A proactive strategy for managing regulatory risk will help to avoid creating or discovering impediments that can disrupt or fatally derail the investment and at the same time enhance the digital health innovation’s potential.

 

During the AHLA Annual Meeting on Sunday, June 24, Bernadette M. Broccolo, McDermott partner and co-author of The Law of Digital Health, will share new approaches in health care and technology innovation ventures and explore practical planning and contracting strategies that maximize innovation opportunities while managing enterprise risks. Employing illustrations of the structures, roles and relationships of key players, Bernadette will provide an overview of emerging commercialization and monetization trends, motivating factors, perceived benefits, interested investors and funding sources; provide guidelines and other tools for evaluating and managing risks, structuring investment arrangements, and establishing enhanced governance oversight; and explore strategies for navigating complexities throughout the venture’s entire planning and implementation lifecycle so as to both manage the complex, multi-dimensional compliance and other enterprise risks and reap the potential rewards.

Blazing New Trails in Health Care and Technology Innovation Ventures
AHLA Annual Meeting, Chicago, IL | June 24, 2018 | 2:45 – 4:00 pm | Registration and program details.

McDermott’s Cocktail Reception during the AHLA Annual Meeting
The Art Institute of Chicago | June 26, 2018 | 6:00 – 8:00 pm

Following the AHLA Annual Meeting programming on Tuesday, we invite you to join us for our annual cocktail reception at The Art Institute of Chicago. We look forward to an evening of networking, cocktails and private gallery tours with our colleagues, friends and fellow AHLA members. RSVP today!