Jonathan Bush Launches New Startup After Athenahealth

Jonathan Bush Launches Zus, a New Digital Health Data Platform

Jonathan Bush, the CEO and co-founder of Athenahealth, remains a prominent, and at times contentious, figure within the healthcare industry.

Over two decades following the inception of the now-public healthcare company, Bush saw Athenahealth acquired by Elliott Management, an activist investment firm, in conjunction with Veritas Capital. Concurrent with this period, allegations of domestic violence emerged involving his former wife, Sarah Seldon. Bush acknowledged responsibility for “regrettable incidents” occurring 14 years prior, during a challenging personal period.

Seldon, who TechCrunch attempted to contact, previously stated that she and Bush maintain a “co-parenting relationship” characterized by “respect, collaboration and love.”

From Athenahealth to Firefly Health and Beyond

Following these widely publicized events, Bush stepped back from public view before resurfacing as executive chairman of Firefly Health, a primary care startup.

Now, Bush is initiating another venture, co-founding a new company focused on reimagining the digital health data infrastructure. Zus aims to establish a unified data platform accessible to physicians, irrespective of their specialization or geographic location, to facilitate a more comprehensive understanding of their patients.

Essentially, Zus is envisioned as a sophisticated, large-scale Google Doc tailored for healthcare, enabling health tech startups to accelerate the development and deployment of their solutions.

Series A Funding and Market Opportunity

Alongside its launch, Zus has secured $34 million in Series A funding, spearheaded by Andreessen Horowitz, with contributions from F-Prime Capital, Maverick Ventures, Rock Health, Martin Ventures, and Oxeon Investments.

Bush’s return to entrepreneurship, backed by venture capital, may surprise some observers, including himself.

“My time leading Athena was deeply fulfilling, spanning 22 years,” he commented. “However, I have no desire to replicate that experience. I wasn’t actively seeking to lead another company.” His perspective shifted due to two key factors:

• He anticipates that constructing a platform-based company will differ significantly from a traditional services model, potentially reducing controversy.
• He perceives a “strong calling” to bring this tool to fruition amidst the current expansion of the digital health sector.

Addressing Challenges in Digital Health

“The success of these digital health companies hinges on substantial acceleration,” he explained. “They are all grappling with difficulties in recruiting engineers, navigating extensive regulations, and managing the inherent complexities of developing medical technologies.”

Zus intends to address these challenges by creating capacity. The company’s plans encompass a growing suite of software tools for patient relationship management, a data aggregation service to standardize medical records for seamless sharing, a platform enabling collaborative access to patient information for multiple physicians, and a patient portal providing transparency regarding data sharing practices.

Currently, the platform is being utilized by four partners: Cityblock Health, Dorsata, Firefly Health – Bush’s previous venture – and Oak Street Health.

Regulatory Landscape and Data Portability

The company’s emergence is partly attributable to recent regulatory advancements. The 21st Century Cures Act granted patients the right to access their medical records, with third-party access slated to become available next year.

This increased data portability is expected to foster a new wave of healthcare applications, although concerns remain regarding patient awareness of data usage implications.

Firefly Health and Andreessen Horowitz Perspectives

Mimi Liu, chief technology officer of Firefly Health, stated that Zus will streamline the development of its infrastructure, reducing rollout timelines from years to weeks and months. She further noted that the “downstream network effect” resulting from information sharing will enhance its clinical value.

Andreessen Horowitz (a16z), the lead investor, also holds stakes in Firefly Health, as well as other healthcare startups including Incredible Health, Omada, PatientPing, and Cedar.

The Digital Health Stack Thesis

Julie Yoo, general partner at Andreessen Horowitz, highlighted that Zus aligns with their “digital health stack” thesis, which emphasizes the need for “infrastructure platforms serving the expanding digital health landscape, preventing redundant development of core technologies and operational components.”

Regarding Zus’s unique value proposition, Yoo stated that the company will establish a community-driven marketplace for digital health companies to exchange notes, a feature currently lacking in the sector.

“Jonathan Bush’s experience with the More Disruption Please (MDP) program at Athenahealth uniquely positions him to build a modern iteration of this concept,” she added. The MDP program, launched by Bush in 2017, aimed to populate Athenahealth’s San Francisco office with emerging healthcare entrepreneurs.

Positioning in a Competitive Market

Zus is not the first to attempt creating an “AWS for healthcare,” with numerous companies already addressing various components of the digital health infrastructure, from administrative workflows to patient data retrieval.

However, its comprehensive approach, coinciding with regulatory changes and increased investment, coupled with an experienced founder and established network, may position it favorably for future success.