Case Seeks Health Care Revolution
AOL Ex-Chief Puts Up $500 Million in Venture

By David A. Vise
Washington Post Staff Writer
Tuesday, April 5, 2005; Page E01

Former America Online chairman Steve Case said yesterday he is launching a District-based venture called Revolution that owns controlling stakes in companies that provide health care services, manage resort properties or operate in related fields.

In an interview, Case said he has committed $500 million of his own money to the venture, which he hopes will succeed at refocusing the health care system so that it puts the interests of consumers first. He said the enormous inefficiencies in health care became glaringly clear to him through both personal experience -- as a patient, a parent and a sibling -- and through talks with Sen. Bill Frist (R-Tenn.) and other experts.

"It is the largest industry in the country, and almost everyone is unhappy with it," Case said of health care.

Case is likely to find that transforming the health care industry is much easier to talk about than it is to achieve. From the highest levels of government and industry, others with more clout than Case have tried and failed to turn a $230 billion industry into one that is more consumer focused.

Case declined to provide specifics about the health care ventures he intends to pursue. He said 90 percent of health care expenditures go to treat sick patients while only 10 percent are earmarked for keeping people well. His comments, and early investments, suggest that he will focus on the wellness business. He also said inefficiency, such as patients being asked the same questions repeatedly about their health histories before medical treatment, must be addressed.