The New York eHealth Collaborative, the New York City Investment Fund and the New York State Department of Health have launched a $4.2 million program to foster health IT innovation and create 1,500 new jobs in the state.
Called the New York Digital Health Accelerator (NYDHA), the program’s goal is to make New York a hub for the emerging digital health technology industry.
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 company will be awarded up to $300,000 along with 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, officials say.
"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, MD. "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,” added Maria Gotsch, president and CEO of the New York City Investment Fund (NYCIF).
“This Accelerator will help New York keep and attract businesses that grow our state's economy and create jobs in our communities. 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," said 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."
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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, officials say, 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).
More information, including an application for the program, is available at www.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.
The program aims to create 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 is designed to stimulate a new marketplace, creating the next generation of healthcare tools while positioning New York as the capitol of the health IT entrepreneurial sector, officials said.
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.