WellSpan Health, an eight-hospital system in Pennsylvania, first partnered with General Catalyst three years ago to address staffing challenges through technology. Now, the health system is expanding that collaboration, working with the venture capital firm and its portfolio companies to co-develop artificial intelligence tools.
General Catalyst announced that WellSpan is its first transformation partner within the Health Assurance Transformation Corporation (HATCo). The initiative will merge HATCo’s technology expertise with WellSpan’s on-the-ground healthcare experience to test and refine solutions in a real-world clinical environment.
As part of the agreement, HATCo will deploy a dedicated team to WellSpan to help co-build its technology stack. The effort will integrate solutions from General Catalyst portfolio companies as well as external innovators, with the goal of enhancing patient care and shaping the future of healthcare, according to General Catalyst CEO Hemant Taneja in a LinkedIn post about the expanded partnership.
Over the past two years, WellSpan Health has worked with several of General Catalyst’s portfolio companies, including Commure, clinical AI startup Aidoc, and Hippocratic AI. According to General Catalyst CEO Hemant Taneja, the health system has been a “crucial early adopter,” helping guide how AI-powered tools can enhance care quality, operational efficiency, and workforce capacity.
WellSpan began collaborating with Aidoc in 2022 and was among the first health systems to roll out Hippocratic AI’s generative AI healthcare agent last year. The organization has also invested in both startups.
“We’ve done very deep co-creation and co-development work with Hippocratic AI, and we’re seeing terrific results in transforming people, processes, and technology within our organization,” said Roxanna Gapstur, Ph.D., president and CEO of WellSpan Health, in an interview with Fierce Healthcare. “That success convinced us that strengthening this partnership over the next five years would be essential.”
What began as simple idea sharing and early access to startup innovations has now evolved into a comprehensive co-creation model, where WellSpan and General Catalyst are jointly developing and scaling breakthrough solutions, Gapstur added.
The partnership will be a cornerstone of WellSpan Health’s five-year strategy, according to president and CEO Roxanna Gapstur. Together, the organizations plan to design and implement new AI technologies to enhance both the employee and patient experience. Executives estimate the collaboration could help reclaim more than 400,000 clinical hours annually, freeing up staff to spend more time with patients.
In addition, the health system is aiming for double-digit business performance improvements over the next five years.
“Integrating advanced healthcare technology can be difficult, especially when organizations rely on older, fragmented systems,” Gapstur said. “That’s why it’s so important to set ambitious goals for connecting care across the ecosystem. Many health systems end up with multiple point solutions that don’t always work well together. We’re excited to collaborate with General Catalyst on creating a more connected ecosystem that simplifies care for both patients and team members.”
WellSpan Health operates more than 220 care sites, eight hospitals in south-central Pennsylvania and northern Maryland, along with home care services and a behavioral health organization.
The collaboration with WellSpan comes as HATCo advances its acquisition of Summa Health, an Akron, Ohio-based health system. In November, HATCo announced it had signed a definitive agreement to acquire Summa Health for $485 million.
“This partnership is happening sooner than I anticipated,” General Catalyst CEO Hemant Taneja wrote in a LinkedIn post. “When we launched HATCo, I assumed we would first need to validate our health assurance thesis through our ownership and work at Summa Health before other systems were ready to engage. But WellSpan’s experience with our portfolio companies and its exposure to technology-enabled possibilities provided validation on its own. The timing of this partnership also highlights the growing urgency—and willingness—for transformation among health systems.”
WellSpan and General Catalyst will focus on three key areas for applying automation and AI technologies, according to WellSpan CEO Roxanna Gapstur:
Revenue cycle and business functions to strengthen financial sustainability
Workforce automation to reduce administrative burdens
Personalized and proactive care delivery powered by data analytics, AI, and digital health innovations
Within the third area, the organizations will emphasize care navigation, ensuring patients and consumers can more easily move through the healthcare system, Gapstur said.
Daryl Tol, president of HATCo, noted that the solutions developed in this partnership could not only strengthen WellSpan but also serve as a model for other health systems aiming to improve outcomes, manage costs, and support their care teams.
As part of the collaboration, WellSpan will also provide consulting and innovation support, leveraging its internal development teams to help advance AI technologies across other health systems and care settings.
“WellSpan has been very forward-thinking in how we integrate people, processes, and technology,” Gapstur said. “Over the past three years, we’ve gained significant expertise in safely and effectively working with AI, ensuring quality care, and building new skills across our teams. That foundation positions us well to co-develop new workflows and approaches with General Catalyst to make healthcare easier.”
General Catalyst’s healthcare portfolio includes more than 120 companies, and there may be opportunities for WellSpan Health to broaden its collaboration with the venture capital firm, according to Gapstur.
“We’ll be exploring new ideas together about where we can go next,” she said. “We’ve even considered whether some companies in General Catalyst’s broader portfolio—outside of healthcare—could be applied within the industry. There are many possible directions, but ultimately, we’ll prioritize opportunities that deliver the greatest value for our care teams and patients.”
