HealthLoop, a patient engagement and care coordination business based in Mountain View, California, has raised the first close of an $8.4 million financing round as it continues to expand its business by boosting sales and marketing teams.
The company added new investors including iCarbonX DigitalLife Alliance, NextEquity, Lafayette General Hospital through its Health Innovation Fund. Canvas Ventures and Summation Health Ventures also took part in the round, said Todd Johnson, HealthLoop CEO, in a phone interview.
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The Digital Life Alliance has also invested in PatientsLikeMe.
HealthLoop’s technology is designed to improve communication between physicians and patients and support post-hospitalization follow-up care to track patients’ recovery. The digital health company gathers patient-related outcomes data post-surgery data on physical therapy visits and home care visits. Johnson credited the company’s software with reducing adverse events and surgical complications.
The company’s customer base includes a mix of middle market, single specialty practices and hospitals. To date, HealthLoop counts more than 70 hospitals and medical groups as customers.
“Provider organizations need help,” CEO Todd Johnson said in a phone interview, confirming the new financing. “They have an impossible job of anticipating when their business models will shift from fee-for-service to value-based care and so many have a foot in each camp, it’s so hard for them to make decisions.”
Although the CMS Comprehensive Care for Joint Replacement bundled payment program has helped the company’s growth, Johnson has said that the business sees several applications of its platform for chronic conditions such as patients with COPD, congestive heart failure, and diabetes.
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