Health IT, Startups

Doctor.com closes $5M Series A round to launch marketing automation platform for physician practices (Updated)

The funding will also be used to help Doctor.com expand its work with hospitals and health systems to manage online listings of their providers.

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A healthcare startup to help physician practices boost their online visibility and reduce referral leakage has raised more than $5 million in a Series A round. Doctor.com will use the funding from the private investment firm to launch a healthcare automated marketing platform, among other priorities.

Spring Mountain Capital led the Series A round. But Andrei Zimiles, Doctor.com CEO and cofounder, revealed in an emailed statement Thursday morning that Colle Capital — a longtime investor with the business —also took part in the round.

The marketing automation platform includes three components, Zimiles noted in an email — provider data management, reputation management and patient engagement. The service can help users create a master profile for physicians and facilities within a provider organization, ensure the data is correct and connect to major healthcare and local search sites. The platform can also help providers get patients to rate and review their care and syndicate patient reviews to key healthcare sites patients use to find and compare doctors. The service also supports online scheduling, patient reminders and follow-ups.

The funding will also be used to help Doctor.com expand its work with hospitals and health systems to manage online listings of their providers.

“We see an incredibly compelling opportunity to create a cloud-based “system of record” for these large organizations to manage, maintain, and market their provider data, and are investing heavily in our capabilities in this area,” Zimiles said.

Staff growth is another priority. With the opening of an office in Cupertino to support engineering and product development, the company is hiring “aggressively” on both coasts and intends to double in size to 120 by the end of the year, said Zimiles.

Raymond Wong, the head of Spring Mountain Capital’s Private Equity Group, said in the statement that the growing interest by patients in using Web searches as part of their healthcare decision-making process means physician practices need to significantly improve the quality of information their websites offer.

“More and more, patients are seeking information online before choosing a physician or dentist. Doctors are attempting to adapt to this significant change in healthcare consumption and are motivated to ensure that their online profiles are accurate and their online reputations are properly maintained; however, they are finding themselves ill-equipped to do so.”

The platform launch follows Doctor.com’s acquisition last year of ReferBright — a company that developed software to help physicians improve referrals by improving online visibility to attract more patients to their practices.

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