Established 2014
The Digital Innovation Group is Providence's internal venture studio, building and commercializing new digital health companies from inside the health system rather than investing in outside startups. It uses an inside-out model: it identifies problems raised by patients, caregivers and other health systems, writes business plans for the most promising ones, then develops, tests and refines the product inside Providence's own clinical operations before scaling it to external customers. The group's advantage is access to Providence's data, clinical expertise and real workflows, which external startups typically lack. Companies that mature are spun out as independent, venture-backed entities that sell to health systems nationwide, and outside investors and health system customers engage at that stage. It serves Providence clinicians and operators as the source of ideas and outside health systems as customers.
Documented successes: Spun out Circle, a mobile family health management app, which was acquired by Wildflower Health in 2018 (Providence blog); Incubated and spun out Xealth, a platform for prescribing and managing digital health tools; Incubated and spun out DexCare, which handles scheduling, access and follow-up care based on patient preference; Operates with roughly 200 staff in five groups including an in-house product development team and an Entrepreneur-in-Residence program; Incubated and spun out Xealth in 2017, Circle in 2018 (later acquired by Wildflower Health) and DexCare in 2021 (PR Newswire, October 2023); Praia Health, its fourth incubated technology, launched internally in January 2022, supports more than three million user accounts and delivered approximately $20 million in measurable value to Providence during 2022 (PR Newswire, October 2023); All three earlier spin-outs secured major contracts with health systems nationwide and continue as separate venture-backed entities (Providence blog)