Modern Healthcare January 18, 2020
Jessica Kim Cohen

The 2010s brought serious reality checks to once-favored technology startups in healthcare. But despite some major blowups, health system and venture-capital leaders say they generally aren’t spooked about the startup scene.

A major reason why is that startups, while often new entrants to a field, have in the past disrupted industries—something healthcare needs—making investors a lot of money in the process. That’s part of the incentive for Partners HealthCare in Boston, which since 2008 has opened multiple investment funds that have attracted millions of dollars. Partners’ most recent effort, launched last October, is a $30 million fund dedicated to artificial intelligence and digital technologies.

“There’s an ability to do more, to accelerate these collaborations and the adoption of this technology,...