Louisiana is a state with poor national rankings in both health and wealth — yet also one with a substantial health care sector.
Applying strength to weakness to resolve this dichotomy is the purpose of the newly established Ochsner Louisiana Innovation Fund.
“We want to inspire healthier lives and stronger communities,” said Aimee Quirk, chief corporate development officer and CEO of Ochsner Ventures, which launched the Innovation Fund in July. “We also want to be a part of economic development and economic opportunity in the state, to create new jobs and attract new talent to Louisiana.”
Ochsner Health is the largest private employer in the state and the largest nonprofit health care provider in the Gulf South region. Ochsner Ventures was founded in 2022 to coordinate the organization’s investments, collaborations and business development work. Ochsner has historically brought resources, expertise and networking to Louisiana’s health care sector; in the past six years, it has committed $12 million to funds and companies in the state.
“Ochsner Ventures supports entrepreneurship and the local entrepreneurial ecosystem,” Quirk elaborated, “and marries this with our longstanding focus on innovation.”
According to Quirk, the Innovation Fund, which currently stands at $10 million, is a way to further enhance the effectiveness of Ochsner’s investments.
“The fund emerged from our innovation work and conversations we had with various partners,” she explained. “We were looking for new ways to invest in Louisiana companies. We felt that there was more that we could be doing, so we created the fund to focus on this work.”
One area of emphasis is digital health, sometimes referred to as telemedicine.
“We’ve been a pioneer in digital health,” she said, “and we have a national reputation for that. We see that as an important growth area.”
In general, the Innovation Fund is looking for Louisiana-connected, health care-related companies that are in their early stages. The fund makes venture investments, but the overall picture is considerably broader.
“We’re interested in working with founders who are committed to create and scale health care innovation and bring quality health care to everyone,” explained Quirk. “We’re looking for great ideas that will create jobs and drive innovation, from companies that can scale what they are doing.
“But it’s not just the dollars,” she continued, pointing out that Ochsner’s national network of venture capital and health care experts, along with its own in-house facilities and expertise, brings considerable additional value to these early-stage enterprises.
One challenge the fund faces is finding companies and individuals that are a good match for the program.
“We have to sort through a lot of companies to find those that are truly trying to solve real health care problems,” she said, “and even then, it’s not always a good fit. The program must work for the entrepreneur as well as for us.”
Quirk said that Ochsner’s example as an investor is a powerful way to advance the health care sector while driving economic growth.
“Having investors from that area of business means that they understand the problems and can help find the right solutions,” she noted.
For Ochsner, investing in its field “creates a lot of wins,” including keeping talent in the area, creating jobs and supporting innovation.
“As a healthcare organization anchored in Louisiana, we want to make Louisiana the healthiest state possible,” Quirk concluded. “The Innovation Fund will enable us to identify and help make successful the innovations that will help us do that.”
Keith Twitchell spent 16 years running his own business before becoming president of the Committee for a Better New Orleans. He has observed, supported and participated in entrepreneurial ventures at the street, neighborhood, nonprofit, micro- and macro-business levels.