Health systems are no longer just consumers of innovation – they’re becoming its architects. From investing in startups to co-developing technologies, forward-thinking providers are reshaping the digital health landscape with clinical insight and operational expertise.

Rock Health, an industry analyst, was among the first to track this type of enterprise-driven innovation and even developed a database to do so. The now robust Partnership Database includes health systems that have announced investments or launched their own proprietary products.

Over the past year, Sutter Health has appeared in the database more frequently, and it’s easy to see why. Sutter has formed several strategic partnerships, representing thoughtful, often multi-year commitments to test, adopt and scale new tools that improve care delivery, boost efficiency and expand access. Sutter’s budding portfolio includes solutions to reduce clinicians’ administrative burden (Abridge), improve patient care (GE HealthCare and Aidoc) and expand access to services (Concert Health). The integrated, not-for-profit health system also announced its own remote patient monitoring program, Sutter Sync, earlier this year, designed to help patients proactively manage their chronic health conditions from anywhere.

As part of its continued exploration, Rock Health invited Sutter leaders to share how the health system is strategically positioned to make the most of an entrepreneurial ecosystem that includes mature digital health and emerging clinical AI solutions.

Laura Wilt, chief digital officer at Sutter, spoke at the Rock Health Summit this month. She explained that Sutter’s dual role—as investor and adopter—creates an environment where innovation can be both tested and scaled. Her “three rules of partnerships” offered attendees a clear view into the health system’s priorities.

“First, I want to make sure that we’re solving a problem for our business, so that can be something for our patients or our providers, or really anyone on the care team.

 

“The second one is co-development opportunities. We think we have some amazing clinicians and physicians who can really help shape things, and so [we] want to give them an opportunity to be involved

 

“And then finally, if there’s an equity opportunity or way we can co-invest. If we can get all of those things done, we feel like we have a really deep partnership that we can grow with someone.”

Dr. Richard Milani, chief clinical innovation officer at Sutter, joined a Rock Health virtual panel in August, focused on AI in primary care. Dr. Milani described how digital tools are transforming care delivery. The first example he shared was Sutter Sync, saying:

“(W)e’re collecting data directly from home, and we’re actively managing all the patient’s medications [remotely], using guideline-based therapy, and getting three-fold better control rates than standard of care … while reducing the burden on primary care.”

His second example was Targeted Conditions Outreach, a Sutter program that blends predictive analytics and proactive care management to help patients stay healthier and avoid preventable complications. Dr. Milani put it simply:

“(U)sing artificial intelligence to triage risk among your patient population allows you to focus your attention on those that are at the highest risk.”

Chris Waugh, Sutter’s chief innovation officer, was interviewed by Rock Health in July for a piece aptly titled “Enterprise Innovation in Action.” In the article, Waugh described the three pillars of Sutter’s innovation work: products, catalysts and partnerships and investments.

To describe the role of catalysts, Waugh gave a concrete, and recent, example.

“We’ve consistently seen that our frontline clinical and operational teams have brilliant, practical ideas—but can lack the technical knowledge or tools to bring those ideas to life. That’s why, in 2024, we launched our Innovation Challenge, an enterprise-wide call for bold ideas from employees and clinicians across our organization.”

The winning idea from 2024, a smartphone-based screening tool to help detect cognitive decline early, is now being piloted at Sutter sites in Sacramento and San Francisco. On partnerships and investments, Waugh shared:

“Our vision is to build relationships with companies via commercial deployments, co-development and equity positions. Serving as limited partners in select healthcare and digital health venture funds has provided us with early visibility into emerging trends, technologies and business models.”

By engaging with thought leaders and innovators at forums hosted by Rock Health and others, Sutter Health gains access to fresh thinking, emerging technologies and real-time market signals. In turn, the startup community has the chance to hear how Sutter is positioned to translate innovation into better care for the 3.5 million patients the organization serves.