General Catalyst's Billion-Dollar Bid for Hospital System Signals VC Firm's Ambitious Expansion

Venture capital firm General Catalyst is planning to buy and operate a hospital system through its new company, the Healthcare Assurance Transformation Corporation (HATCo). The goal is to create a revolutionary healthcare company that serves as a proving ground for technology from General Catalyst's portfolio companies and spreads successful innovations to a network of 20 other health system partners. The move aims to bypass the challenges faced by digital health startups in dealing with slow-moving health systems and accessing high-quality patient data. General Catalyst is looking for a hospital in the $1 billion to $3 billion range and intends to have a long-term vision rather than a quick sale.