The interest in using health IT tools as a way to improve healthcare delivery and efficiency has produced many rapidly growing healthcare companies, many of which can trace their origins within one or two years of Obamacare’s passage. These companies have reached a stage of their development to accelerate growth and that has coincided with a readiness by healthcare providers and payers to adopt or ramp up their technology.
With a nod to the top healthcare company on Inc’s 5,000 Fastest Growing Companies, molecular diagnostic companies with smartphone-enabled technology have also become more attractive as investment and acquisition targets.
Overall, healthcare companies on the list collectively generated $21.8 billion in revenue, more than any other sector. There were more startups on the list this year than global and franchise businesses put together. So how did healthcare do? I held the count under 500, to keep it manageable.
Crescendo Bioscience was the fastest growing healthcare company. The 12-year-old molecular diagnostic company in San Francisco, which Myriad Genetics acquired last year, did an impressive sprint to its ranking of 7th this year compared with 67th last year. The company represents a convergence of biotech and digital health. Its Vectra DA Test is used to detect 12 biomarkers in the blood to confirm a diagnosis and to indicate the severity level of rheumatoid arthritis. The test gives a score between 1 and 100 — the lower the number the lower the disease activity. Doctors can also use the test to determine whether there is joint erosion, bone erosion or cartilage breakdown. Its MyRA app, helps RA patients identify parts of the body where they experience pain and make notes and indicate how they feel day to day. The app also helps users generate a visual summary report tracking their data so patients and their doctors can see how they’re doing between visits.
The HCI Group, a health IT consultancy has been around since 2009, doing installations for electronic health records, validation, testing, optimization and ongoing support, according to Inc. Its revenue shot up to $34.5 million last year compared with $259,420 in 2010. In an interview with HIStalk earlier this year, Chief Strategy Officer Cythia Petrone-Hudock said the company works with clients to identify what their needs are and to develop creative solutions that reduce the cost of healthcare and improve their ability to increase the quality of healthcare, particularly in the realm of electronic medical records. “We were established to meet the system implementation needs of healthcare organizations, but we promote cost-effective solutions.”
Medhok is a Software as a Service company to improve clinical outcomes and quality measures. It links reimbursement to better outcomes for health plans, accountable care organizations, patient-centered medical homes, and other groups. It generated $17 million in revenue for 2013, according to Inc., compared with $185,000 in 2010. It has added 92 jobs in the past three years.
Nordic is a health IT consultation company that provides services to healthcare facilities that use fellow Madison, Wisconsin electronic medical record producer Epic. It ranked 46 after having a huge revenue growth spurt from $1.4 million in 2010 to $81.4 million three years later.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Connexion Point is a Salt Lake City company that develops programs to help health plans and providers communicate with members about health care choices and benefits. It ranked 86 on the list but was the fastest growing company in Utah. Since the Affordable Care Act was passed it has grown from four to 1,252 staff.
LaunchPoint is a healthcare analytics business that’s also the parent company of Discovery Health Partners and Ajilitee. It ranked 100 on the list with $12.8 million in revenue. In a statement, CEO Terrance Ryan said its payer clients are interested in improving their claim payment integrity, how they manage information, and analytic insight — needs that have been amplified with healthcare reform.
MobileHelp’s medical alert monitoring tools include an event notification and online tracking platform for families and caregivers. It ranked 111 on the list, with $18.6 million in revenue last year, compared with a little more than $548,000 in 2010.
hCentive’s technology supports the state and federal health insurance exchanges and marketplace. It has added about 430 staff in the past three years to support exchanges as people seek to enroll in plans to comply with ACA. It has also boosted revenue to $26.4 million, earning it a rank of 117 on the list. In a statement, Sanjay Singh, the CEO, said, “We see continued growth for our products as more states and private insurers look to simplify and streamline their offerings.”
CareCloud, an EHR software and medical billing software provider, ranked 127. It achieved $10.4 million in revenue last year and has added 193 jobs in the past three years. It developed an eye-catching user interface that centralizes patient information with data like account balance, clinical summary and notes, among other things. It also has a set of patient engagement tools. In an interview with HIStalk, CEO Albert Santalo pointed out that the first employee he hired was a designer.
CoverMyMeds automates drug prior authorizations for medications and health plans. It ranked 280 after boosting revenue to $18.6 million last year from $1 million in 2010.
