April 13, 2024

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A New Revenue Stream for Healthcare Systems

2 min read

Two leading healthcare giants, Mayo Clinic and Mass General Brigham, are taking a strategic step toward financial resilience and innovation by leveraging their expertise in healthcare technology. The trend of licensing out custom-built technology tools, such as artificial intelligence and clinical note summary tools, is emerging as a promising new revenue stream for large health systems. This approach not only offers a solution to financial pressures, but also positions these institutions as pioneers in healthcare technology.

The Drive Towards Technology Licensing

Healthcare organizations are increasingly feeling the pinch of shrinking profit margins, workforce shortages, and soaring labor costs. In response to these challenges, institutions like Mayo Clinic and Mass General Brigham are exploring the potential of their in-house technology. By licensing out these custom-built tools, they can generate additional income while continuing to advance healthcare solutions.

At the recent J.P. Morgan Healthcare conference, several influential health systems doubled down on this strategy. They see the potential in selling technology tools that they have developed, particularly in response to the current tech boom in healthcare. These tools range from artificial intelligence applications to scheduling and clinical note summarization tools, all aimed at improving patient care and streamlining clinical workflows.

Expanding Impact Beyond Their Own Institutions

By licensing out their technology, these health systems are not just opening up new revenue streams. They are also broadening their impact on the healthcare industry. This move allows them to share their innovative solutions with other healthcare providers, enhancing patient care and clinical efficiency beyond their own institutions.

Mayo Clinic and Mass General Brigham have announced a licensing agreement that embodies this strategy. This agreement allows them to share their custom-built technology tools with other organizations, reinforcing their leadership position in healthcare technology.

Education and Employment: A Comprehensive Approach

Beyond technology, Mass General Brigham is also investing in healthcare education and employment. In partnership with Bloomberg Philanthropies, the organization is investing $37.8 million over five years in the Edward M. Kennedy Academy for Health Careers. The aim is to double the school’s grade 9 to 12 enrollment to 800 students and create a guaranteed path to jobs at Mass General Brigham.

The revamped school will operate from 2024, offering new pathways in surgery, medical imaging, and medical laboratory science. Mass General Brigham will assist in designing a specialized healthcare curriculum, partly taught by its own employees. All students who complete the programs will be guaranteed interviews with the hospital system, presenting a unique opportunity for students from marginalized communities to enter the healthcare industry.

This comprehensive approach, encompassing technology and education, reflects how large health systems are innovating to meet current challenges. By monetizing their in-house technology and investing in future healthcare professionals, organizations like Mayo Clinic and Mass General Brigham are shaping the future of the healthcare industry.


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