Ascension Health Contact:
Trudy Barthels
Director, Communications
314.733.8207
tbarthels@ascensionhealth.org

Catholic Health Initiatives Contact:
Michael Romano
Director, Media Relations
303-383-2720
michaelromano@catholichealth.net

(St. Louis) October 5, 2007 – Three prominent Catholic health systems have joined together to form CHV II, LP, a $200 million venture capital fund focused on making venture investments in the healthcare industry.  Ascension Health, Catholic Health Initiatives (CHI) and Catholic Health East (CHE) are the participating limited partners.  Ascension Health Ventures II, LLC (AHV), a wholly-owned subsidiary of Ascension Health, will be the general partner and provide management services to the limited partnership.

CHV II is the second captive strategic venture fund for Ascension Health and the first for CHI and CHE.  In 2001, Ascension Health launched Ascension Health Ventures with $125 million.  That fund is now fully invested, committed and reserved in more than 20 portfolio companies and has begun to deliver financial returns to Ascension Health.  In addition to financial returns, Ascension Health has reaped significant strategic benefits through access to AHV’s in-depth research and line of sight into future innovations, while Ascension Health facilities have adopted numerous products, technologies and services that have been referred by AHV.

CHV II will continue the investment strategy that AHV employed in its first fund, targeting expansion to later stage medical device, healthcare technology and healthcare service companies in areas of interest to the limited partners.  A portion of the fund will also be committed to other healthcare venture funds.

While AHV will provide investment and portfolio management services to CHV II, governance oversight will be accomplished through a Board of Managers that will include members from the venture capital industry and representatives from Ascension Health, CHI and CHE. 

“As a large Catholic health ministry, we feel a strong responsibility to do everything we can to strengthen Catholic healthcare in the U.S.,” said Anthony R. Tersigni, EdD, FACHE, President and CEO, Ascension Health. “Developing this new venture fund with two other Catholic healthcare organizations supports our ability to perform and transform.  The results from our first fund are extremely positive and we look forward to CHI and CHE benefiting from that experience and working together to build on that success. Beyond financial returns, these funds push the limits beyond current technologies and treatments to explore opportunities to truly transform care delivery in the future.”

Kevin Lofton, President and CEO of Denver-based CHI, said, “This investment fund will bring together three non-profit Catholic health systems and create the unique opportunity to collaborate with a network of more than 180 hospitals in identifying and evaluating investment opportunities that can deliver significant clinical benefits to patients. It’s a model of venture-backed innovation that we believe offers great potential for enhancing quality and the way healthcare is delivered. Ascension Health Ventures has been a big success,” he added. “CHI is looking forward to working with its new partners to advance our strategic priorities.”

“AHV provides a Catholic health ministry like CHE the unique opportunity to collaborate with others to stimulate clinical innovations and improvements in quality and patient safety,” said Robert Stanek, President and CEO, Catholic Health East. “CHE expects this commitment to CHV II will help us as we strive to deliver on our 2017 Preferred Delivery model.”

“We are proud of what has been accomplished with AHV and very excited about expanding our limited partner base with such quality partners,” said Matt Hermann, Managing Director at Ascension Health Ventures.  “By adding CHI and CHE as our strategic investing partners, we offer a more compelling multi-system reason for healthcare companies to speak with us.”

About Ascension Health Ventures and CHV II

Ascension Health Ventures, LLC (www.ascensionhealthventures.org) was launched in 2001 as a wholly-owned subsidiary of Ascension Health. AHV’s role has been to construct and manage a strategic portfolio of investments that deliver a venture investment return, have the potential to transform the healthcare industry and significantly enhance the quality of patient care.  CHV II, LP, a limited partnership between Ascension Health, Catholic Health Initiatives and Catholic Health East, has been formed to expand this strategic investment initiative to other Catholic healthcare systems.  AHV is the general partner of CHV II, LP.

About Ascension Health

Consistent with its mission to serve all people with special attention to those who are poor and vulnerable, Ascension Health (www.ascensionhealth.org) is an innovative leader in transforming healthcare through patient-centered, holistic care of the highest clinical quality, and provided $703.9 million in care of persons who are poor and community benefit last year.  Ascension Health is the nation’s largest Catholic and nonprofit health system, with more than 106,000 associates serving in 19 states and the District of Columbia.  Ascension Health includes 77 hospitals and other related healthcare facilities.

About Catholic Health Initiatives

Catholic Health Initiatives (www.catholichealthinit.org) is a national non-profit health corporation based in Denver, Colorado. The health system includes 73 hospitals; 42 long-term care, assisted and independent living and residential facilities; and two community-based health organizations located in 19 states.  Catholic Health Initiatives represents approximately 65,000 employees and total revenues of almost $8 billion. It is the second-largest Catholic health system in the United States.  Catholic Health Initiatives thrives on its vision of Catholic healthcare as a vibrant ministry, ready to provide compassionate care of minds, bodies and spirits through the 21st century and beyond.

About Catholic Health East

Catholic Health East (www.che.org) is a multi-institutional Catholic health system, which is co-sponsored by 12 religious congregations, and Hope Ministries, a Public Juridic Person within Catholic Health East. Based in Newtown Square, Pennsylvania, the System provides the means to ensure the continuation of the Catholic identity and operational strength of the sponsors' health ministries, which are located within 11 eastern states from Maine to Florida.  The System includes 34 acute care hospitals, 4 long term acute care hospitals, 36 freestanding and hospital-based long term care facilities, 12 assisted living facilities, 5 continuing care retirement communities, 7 behavioral health and rehabilitation facilities, 25 home health/hospice agencies, and numerous ambulatory and community-based health services. Catholic Health East facilities employ approximately 50,000 full-time employees as partners in ministry.

© Ascension Health Ventures

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