NextHealth Technologies, a Denver-based startup offering an AI-powered healthcare analytics platform, has wrapped up a $17 million Series B funding round.
TT Capital Partners led the round. Blue Cross of Idaho and existing investors including Norwest Venture Partners also participated.
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The company intends to use the funding for market expansion and product enhancements. It will also use the money to utilize new sources and uses of data to support the interaction between consumers and healthcare organizations.
Founded in 2013, NextHealth has a cloud-based solution that optimizes the effectiveness of payers’ cost, quality and service enhancement initiatives. Its platform currently covers 45 million lives in the United States.
The platform utilizes predictive analytics to help pinpoint the health plan’s most impactable members. The use of prescriptive analytics can then define the best outreach strategy based on the specific member population. The consumer engagement element of the solution manages interventions such as emails, direct mail and SMS text messaging.
Health plans can optimize their programs with the ultimate goal of cutting costs and improving member outcomes.
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NextHealth has released use cases around issues like avoidable ER use and member retention.
“With the annual healthcare big data analytics spend projected to surpass $22B by 2023, healthcare costs continuing to rise, and competitive pressures increasing, it has never been more important for health plans to know how to transform their clinical investments into proven business value,” NextHealth CEO Eric Grossman said in a news release. “NextHealth is thrilled to have this caliber of investors with such strong ties in the healthcare industry to help us expand our innovative solutions in the marketplace.”
Back in 2016, the Denver company closed an $8.5 million Series A round led by Norwest Venture Partners. In a phone interview at the time, Grossman said NextHealth planned to use the financing for product development and to boost staff numbers.
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