Big data startup raises more than $6 million to help payers and providers reduce waste
At a time when healthcare reform is driving providers and payers to exert more fiscal discipline, big data companies can help them recognize and exploit market opportunities faster. A big data startup with a platform to provide that kind of specialized actionable data has raised more than $6 million in a series A financing round, according to a Form D filed with the U.S. Securities and Exchange Commission.
Predilytics uses the big data it generates to help clients improve quality of care, retain members, manage costs, generate additional revenue and coordinate care. The fresh capital it raised will go toward expanding its product offerings and growing operations for healthcare analytics, IT, application development and account management.
In an interview with MedCity News, CEO Christopher Coloian said what sets the company apart from big data rivals is that its platform allows it to use its clients’ data sets to create their own specific predictive model and analytic rule. If they were to purchase an analytic solution from a competitor, those data sets are not tailored to the company.
“What healthcare analytic firms typically do is build binary rules and trim data down to manageable amounts. Our approach involves using computer science to provide automated analysis to continually create new insights. We are doing what marketing and financial service companies have been doing for years.”
Coloian said the company estimates the healthcare informatics market opportunity to be about $2 billion. In the year since its launch, it has stayed pretty consistent and has focused on improving business operations for healthcare plans and providers.
“Most of what we see in healthcare is driving opportunity,” Coloian said. “We can increase insights to improve the quality of healthcare systems.”
With a report published by the Institute of Medicine identifying $750 billion in wasted healthcare expenses through factors like unnecessary tests, administrative paperwork and fraud, no doubt payers and providers will be even more interested in using big data analytics to identify ways to manage and reduce costs.