Startups

Procured Health raises $10M to help hospitals reduce medical device purchasing costs

COO Eric Meizlish said it plans to hire 50-60 more people over the next 24 months in a wide variety of capacities such as sales and marketing and the product side.

Procured imageProcured Health, a health IT business started with the goal of helping hospitals to reduce medical device purchasing costs, has closed a $10 million Series B round.

Heritage Group, a venture-capital firm backed by some of the nation’s leading healthcare companies, and with participation from Health Insight Capital, a subsidiary of HCA.

In a phone interview, COO Eric Meizlish said it would use the new funding to double its staff over the next two years and also invest in deeper and more robust data integration to help hospitals and health systems assess their buying patterns to better understand the correlation between those patterns and what outcomes they are specifically getting for their patients. It also sees an opportunity to get into many more health systems. So far, it works with 30 of them across the U.S..

“We see the opportunity to sell and distribute far broader than our [current] hospital base,” Meizlish said. “We have spent a lot of time talking to hospitals and asking them how can we help them and what do they need, and that goes to our product development.”

Meizlish added that it plans to hire 50-60 more people over the next 24 months in a wide variety of capacities such as sales and marketing and the product side.

“Our mandate for the company has remained consistent from the beginning,”  he said. “Our customers get 10x ROI for subscribing to our application each year. Our applications have found success across a wide variety of hospital systems and academic medical centers. We work with a lot of large health systems and Integrated Delivery Networks — evidence and analytics go a long way with those systems.”

Meizlish referenced its new investors and noted, “One reason why Heritage chose to invest in us is they see direct and immediate application of our solutions across the healthcare ecosystem.”

Heritage’s investors include healthcare organizations such as Adventist Health System, Community Health Systems, Intermountain Healthcare, Sutter Health, and Tenet Health.