Health IT, Patient Engagement

Outcome Health sets sights on 70% of physician practices with $500M fundraise

The business helps physicians deliver personalized content with 3D technology to give patients a 3-D perspective of their illness and treatment options.

 

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More than six months after Outcome Health (formerly ContextMedia) acquired another healthcare content provider Accent Health, the 11-year-old business has closed its first financing — a $500 million growth equity round. The company’s products are designed to help patients understand their condition, improve their interaction with physicians and help them make more informed decisions on the health.

The funding propels the company to a $5 billion valuation, a level relatively few heath IT companies achieve.

Blake Chandlee, executive vice president of industry solutions and emerging businesses for Outcome Health, said it would continue to add more provider customers with the new funding, in an emailed response to questions. He added that it would also be used for investment in product and engineering to extend the company’s product suite, and expand into additional markets.

A news release said the company set a goal to expend from 20 percent of physician practices to 70 percent by 2020.

Investors include Goldman Sachs Investment Partners, Alphabet’s growth equity investment fund CapitalG, Leerink Transformation Partners, Pritzker Group Venture Capital, Balyasny Asset Management, among others, according to a news release. Strategic health systems and healthcare stakeholders aligned with the company’s mission also took part.

Outcome Health employs 600 across its offices in Chicago and New York. Its products include digital screens in doctors’ waiting rooms to provide relevant healthcare information as patients wait for their appointments. It developed an app for physicians to help them deliver personalized content to patients and an interactive exam room tablet. There’s also a larger interactive digital exam wall board that can help physicians give patients a 3-D perspective of their illness and treatment options.

The Accent Health deal announced in November 2016 expanded Outcome Health’s business from 30,000 practices to 55,000 practices. In an interview with Outcome Health CEO Rishi Shah at that time, he said that alongside its continued growth among physician practices, clinical trials are also a new area of growth, starting in 2016.

He also said healthcare startups have played an important role in the company’s evolution. Decision support tools from WiserCare, which uses questionnaires based on a patient’s disease to help them decide which treatment is best for them, are integrated into Outcome Health’s platform.

“We are the nervous system that connects patients and providers,” Shah said. “We are moving from an age of information to an age of intelligence.”

Photo: Getty Images

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