The Innovation Institute was formed in November 2012, with a seed investment of $40 million from the St. Joseph Health System. In October 2013, Bon Secours Health System based in Marriottsville, Maryland became its second member owner. In May 2014, California Institute of Technology (Caltech) signed a memorandum of understanding (MoU) with the institute that gives The Innovation Institute opportunity to collaborate directly with researchers at Caltech on the development of new healthcare products. In June 2014, the institute formed a new staffing business Far West Staffing Services to provide technical and non-technical support staff.
As of 2018, the institute had six member hospital systems: Avera Health, Bon Secours Health System, Children's Hospital of Orange County, Franciscan Missionaries of Our Lady Health System, Mercy Health, and Providence St. Joseph Health.
The institute consists of three primary elements: the Innovation Lab, the Enterprise Development Group, and the Growth Fund.
The Innovation Lab is an incubator and accelerator which serves as a collector for creative ideas. These ideas are then analyzed and developed. In 2014, nearly 100 innovation disclosures were under review and development at the lab. The Innovation Lab hosted the Fourth Innovation Centers Summit Workshop for provider-based healthcare innovation centers on Nov. 17-18, 2014.
The Enterprise Development Group is a shared services group focused on transforming hospital cost centers into revenue-generating businesses. The Innovation Institute is structured to mitigate and “de-risk” the expected short-term costs of the Lab and the Fund through the Enterprise Development Group (EDG). In August 2014, the Innovation Institute announced the acquisition of Healthcare Coding & Consulting Services (HCCS) as a subsidiary of its Enterprise Development Group.
Healthcare Design & Construction (HDC) is a subsidiary of The Innovation Institute offering construction, architectural engineering and planning services to the national healthcare market. HDC was formed through the acquisition of PDC West, a construction firm based in Orange County, California. In July 2014, HDC partnered with Toshiba America Medical Systems to provide streamlined, custom design and construction housing for Toshiba’s acute care and outpatient diagnostic equipment.
Petra-ICS is a subsidiary of The Innovation Institute. In July 2014, Petra announced the completion of the design and construction of The Herman Family Pavilion on the campus of Queen of the Valley Medical Center, Napa, California.
The Growth Fund is a financial supporter for new ideas in healthcare and medical innovation and existing start-ups. Investors in the Innovation Growth Fund provide the capital needed to make these concepts and ideas a reality on a value-added basis.