Confidence in 'selecting the winners'.

Catholic-sponsored Ascension was among the first health systems to set up a venture capital arm to invest in health technology companies. Since 2001, Ascension Ventures has raised $800 million with hospital partners to nurture startup companies. Today, more than 60 health systems have their own venture capital units. Modern Healthcare Southern Bureau Chief Dave Barkholz spoke with managing director Matt Hermann about the promise and pitfalls awaiting hospital systems just getting into the venture capital game. The following is an edited transcript.