Health IT, Daily

Kareo’s $55M fundraise draws attention to IT support needs of small physician practices

CEO and founder Dan Rodrigues told TechCrunch it is helping practices cope with the transition to the consumerization of healthcare.

The diminishing numbers of small, independently owned practices is a reminder that the ones still standing are facing competitive pressures and tough choices as they’ve never had before. Small practices need to update their IT systems to compete effectively, but their spending power is limited so software that makes them more efficient is paramount. Those kind of market pressures have fueled the customer base of companies like Kareo.

The 10 year old health IT company raised $55 million from a group of investors, according to a TechCrunch article. Montreux Equity Partners led the round, and Silver Lake Waterman participated with previous investors such as Greenspring Associates, OpenView Venture Partners, and Stripes Group.

The goal is to expand its marketshare, which stands at 5 percent of the 750,000 medical offices in the U.S.

Among the services the 10 year old company provides are billing, collections, free electronic medical records, and scheduling. CEO and founder Dan Rodrigues said it is helping practices cope with the transition to the consumerization of healthcare.

 “Patients are starting to pay a larger portion of their medical bills, and as a result they’re becoming a bit more savvy and demanding about the quality and cost of the service.”

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