The California Health Care Foundation (CHCF) supports the implementation and evaluation of innovative approaches to improve health care. CHCF has developed an investment fund to support health care technology and service companies with the potential to significantly improve quality of care, lower the total cost of care, or improve access to care for Californians with low incomes.

Strategy

CHCF looks for opportunities where we can add value through knowledge of and relationships with networks of providers, payers, and policymakers in California, and through our expertise in policy, finance, and reimbursement. CHCF staff specialize in new models of care delivery for high-cost populations, behavioral and mental health, delivery system and payment reforms, and the Medi-Cal program overall.

Investment Stage and Range

The CHCF Health Innovation Fund will consider these investment stages and ranges:

  • Existing product or service in active use with at least one customer
  • Demonstrated customer interest in California
  • Initial investment of $500,000 to $1,500,000
  • Capital-efficient business models

Investment Criteria

  • Significant impact: Provide new or more timely access to 100,000 Californians and/or deliver $25M in annual cost savings to the California health care system
  • Strategic alignment: Demonstrate a clear connection to CHCF’s mission to dramatically improve quality, lower total cost of care, and/or improve access to care for populations with low incomes
  • Experienced management team: Employ a CEO and management team with a proven track record or the ability to attract such a team
  • Scale and sustainability: Leverage business models that show potential significant growth and scale

CHCF does not invest in companies primarily focused on healthy food, fitness, pharmaceuticals, or biotech.

CHCF does not invest in medical devices that require Class II or Class III FDA approval. Those that require Class I approval should be within 12 months of approval and should have strong clinical data.

Resources

About the Fund:

Pitch Deck: Investing in Health Care That Works for All Californians

CHCF Health Innovation Fund — Flyer (PDF)

Frequently Asked Questions

About the Field:

The CHCF Blog — Stanford Social Innovation Review: “A Checkup on PRIs” by Margaret Laws

On a Mission: Investing for US Health Impact (2014)

Publication

Margaret Laws on Mission Investing

February 2014
Investing in Innovation
In her former role as director of the Innovations for the Underserved program for the California Health Care Foundation (CHCF), Margaret Laws oversaw the organization's program-related investing initiative. We spoke with Laws about mission investing at CHCF.
Publication

Ed Ghisu and Nancy Barrand on Mission Investing

August 2014
Investing in Innovation
Edmond Ghisu, senior counsel at the Robert Wood Johnson Foundation, co-chairs the committee that makes PRIs. Nancy Barrand, MPA, senior advisor for program development, helps integrate them into RWJF's program activities. We spoke with Ghisu and Barrand about their organization's mission investing work.
Publication

Kimberlee Cornett on Mission Investing

March 2014
Investing in Innovation
As managing director of The Kresge Foundation's Social Investment Practice, Kimberlee Cornett works with the foundation's program teams to make capital and financing available to organizations working on key priorities of the foundation. We spoke with Cornett about mission investing at her organization.
Publication

Pablo Bravo on Mission Investing

March 2014
Investing in Innovation
Pablo Bravo is director of community grants and investments at Dignity Health. He oversees the organization's community investment program, which provides loans at below-market rates to nonprofits working to improve the health of their communities. We spoke with Bravo about mission investing at his organization.