RHOEN-KLINIKUM AG is a large German hospital group that owns five hospitals with 5,300 beds total. To stay competitive in a changing healthcare system, it created RHOEN-Innovations to invest in startups and help with digital transformation. RHOEN-Innovations provides funding, medical expertise, access to hospitals for product testing, and connections to potential customers. Its goal is to support the core hospital business and partnerships through strategic minority investments in innovative startups developing technologies like telemedicine, precision medicine, and network medicine.
2. RHOEN-KLINIKUM AG
Who we are
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• RHOEN-KLINIKUM AG (RKA) is a premier, publicly traded German hospital group with
highly specialized clinics and university hospitals
• RKA owns and operates clinics at five locations with a total of 5,300 beds, employing
15,000 people
• RKA is to be leading in “Innovation Management in Medicine” in the German healthcare
market
• RKA believes innovation must be pro-actively managed and not left to chance
• RHOEN-Innovations is a wholly-owned subsidiary of RKA
3. Our core business
Backgrounds of the German system
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Health insurers heavily focus on reducing costs, leading to less preventive work
A lot of patients already, and numbers are constantly rising
High density of service providers and relatively low prices governed by regulation
A lot of doctors but too few with specific expertise and rural areas are underserved
Limited use of electronic media (EMR, prescriptions) and weak IT-Infrastructure
Set-up of the health system features unfavorable structures
4. Transformation in healthcare
Major trends in the system
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Impacts on the entire healthcare system:
Digitalization & network medicine
Big data & individualized precision medicine
Demographic and geo-demographic changes
Education & knowledge transfer
Internationalization & medical tourism
These trends have either a direct or indirect impact on the entire
health system and open up opportunities for Innovation
5. Our medical strategy
Innovation needs to be proactively managed
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Leveraging synergies and potential efficiency enhancements
Providing adequate and age-appropriate medical care
Linking outpatient and inpatient medical care
Optimizing patient navigation
Pioneering innovations and sustainability
Our goal: being a driving force in providing
high-quality medical care for the future
Campus Concept Digitalization
6. Campus concept
Enabling healthcare provision through linkage
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Ensuring healthcare provision in rural areas:
Cross-sectoral medical services
Competitive locations to expand reach
Accounting for demographic developments
Enhancing prevention and health management
Offering tourism and wellness
7. Strategic projects
Opening the gate for digital health
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Network Medicine: strategic integration and interconnection of all medical
service providers in the patient treatment chain
Co-operation with IBM Watson: optimizing patient treatment through
utilization of “cognitive-computing” technologies
RHOEN-Innovations: strategic investments in highly innovative start-ups
with unconventional approaches
8. RHOEN-Innovations
Complete the campus model approach
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Hospital (inpatient)
Cardiology
Neurology
Orthopaedics
Oncology
Pulmonology
Focus on
patient-
centred
care
Outpatient Centres
Outpatient care at clinical
centres
Emergency response
services
Pre-clinical analysis
Rehabilitation tools
Network Medicine
Inter-sectoral medicine
Patient-centred care
research
Connecting general
practitioners
Telemedicine solutions
Investments in start-ups will help support the core business, the digital
transformation and the partnerships with established players.
Our Focus:
9. Organizational structure
Current set-up for our start-up investments
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RHÖN-KLINIKUM AG
(RKA)
RKA medical
experts
RHÖN-
Innovations
RKA specialists, providing input to
RHOEN-Innovations in evaluating
technologies
Premier, publicly traded German hospital group
owns and operates ten highly specialized clinics
at five locations with a total of 5,300 beds.
KA Ventures Ltd.
Worldwide venture group leading
and managing the contact with
interested start-up companies.
Investment arm and holding entity
for all innovation and start-up
investments.
10. Investment process
Benefits of testing products in a clinical setting
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Network of over 80 leading experts from all major medical fields
to evaluate, pilot and help develop
medical technologies
Preparation of
product test
1
Phase
2
PhaseInitial analysis
Implementation of
product test
3
Phase
Final analysis
4
Phase
Possibility to support start-ups in the CE certification process
11. Summary
Our setup offers a holistic approach
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Venture Funding
• Minority investments (<30%)
• Lead or with consortium
• Up to seven-digit investment sum
Medical expertise
• Valuable expertise & network
• Concrete input & feedback
• Opportunity to develop further
cooperation
Marketing & distribution
• Access to Europe’s largest
healthcare market
• Clinics as a marketing platform
• Close relationship with major
distributors
Hospital Facilities
• Access to premier facilities
• Opportunity to test products
• Potential customers for new
products