One area of digital health where consolidation will continue to increase is the realm of cloud based services for physician practices. That includes apps tied to all the usual admin tools from billing to scheduling to prior authorization.
One company that falls into that category is Azalea Health. The health IT company, which acquired Atlanta-based EHR provider SimplifyMD last summer for an undisclosed amount, has raised $1.5 million, according to a Form D filed with the Securities and Exchange Commission.
In a phone interview with Azalea Health co-founder and CEO Baha Zeidan, he said its first outside funding came from Durham, North Carolina-based VC firm Intersouth Partners, which invests in early stage life science and technology companies.
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He added that the Valdosta, Georgia health IT business, which got its start in 2008, would use the funding to continue to integrate SimplifyMD’s EHR and practice management software with its own admin services, such as a patient portal, billing, and pre-authorization. Its authorization service checks with insurers to get clearance for procedures on behalf of providers.
“More than one-third of Simplify customers are already using Azalea services,” Zeidan said.
Although it has kept more than 60 percent of SimplifyMD’s staff, most of that has been the sales team, so it is also planning to use some of the funds to add staff to support the company’s expansion, Zeidan said.
It is planning to raise a Series B round this summer to support additional acquisitions across revenue cycle management, population health and patient engagement.
“We are looking to do more back-end acquisitions. We’re excited,” Zeidan said. “We feel like our platform will provide [companies] with a more streamlined, scalable operation.”
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