The New York City Investment Fund (NYCIF) joined the New York eHealth Collaborative (NYeC) and the NYS Department of Health (DOH) to launch the New York Digital Health Accelerator (NYDHA), a program that will make New York a hub for the emerging digital health technology industry.
The NYDHA is run by NYCIF and NYeC. In upcoming months the program will choose 12 early- and growth-stage companies that are developing cutting-edge technology products in care coordination, patient engagement, analytics and message alerts for healthcare providers. Each chosen company will be awarded up to $300,000 along with invaluable mentoring from senior-level executives at leading hospitals and other providers in New York. The focus areas of innovation will support the development of products that help the state’s Medicaid Redesign Team and its new “Health Homes” program, an initiative intended to make the state’s treatment of Medicaid patients more coordinated and efficient.
“Health information technology is helping us transform our healthcare system to provide high-quality, cost-efficient, and patient-centered care for the 21st century,” said New York State Health Commissioner Nirav R. Shah, M.D., M.P.H. “The Digital Health Accelerator program will further advance New York’s national leadership in health IT as it will attract leading-edge companies at the forefront of developing the technology necessary for robust electronic health records and digital care coordination systems.”
“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 NYCIF. “Our initial investment will go a long way towards attracting additional investment into New York.”
“The economy and healthcare are the two most important issues facing the state, and the New York Digital Health Accelerator will allow us to tackle them both at once,” noted David Whitlinger, Executive Director of NYeC. “This initiative represents the best kind of marriage between the public and private sectors. We are leveraging New York’s investment in our statewide health information exchange network and empowering it with the free market.”
The NYDHA’s unique feature is that 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. Tech companies accepted into the program will receive direct mentorship and feedback from senior-level executives with the participating providers. In addition, companies 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. An informational session for companies interested in participating will be held on May 10, 2012 in New York City. Applications for the NYDHA program are due June 1, 2012.
With its initial investment of $4.2 million, the NYDHA program will create approximately 1,500 jobs over five years. In addition, it is expected that the companies will attract upwards of $150 million to $200 million in investment from the venture capital community post-program. The NYDHA will stimulate a new marketplace, creating the next generation of healthcare tools while positioning New York as the capitol of the health IT entrepreneurial sector.
The investment capital will be provided by a syndicate of investors, including Aetna, Milestone Venture Partners, New Leaf Venture Partners, New York City Investment Fund, Quaker Partners, Safeguard Scientifics, and UnitedHealth Group. The Empire State Development Corporation, Health Research Inc., and NYeC will provide additional funds and/or services to operate the NYDHA.