Health IT, Startups

Innovaccer raises $70M, adds former Athenahealth CEO to board

San Francisco-based software startup Innovaccer closed a $70 million funding round. The company, which is focused on building longitudinal patient records, also named former Athenahealth CEO Jonathan Bush to its board of directors.

Innovaccer, a software startup rolling up patients’ health records into one platform, closed a $70 million funding round.  The San Francisco-based company plans to use the new funds to build out its platform, which has processed more than 3.8 million patient records to date.

The company pulls information from health plans, pharmacies, primary care providers, hospitals and labs by connecting with more than 200 different IT vendors. It uses this information to help providers better coordinate patient care and provide analytics on care quality and utilization. Some of its customers include Hartford Healthcare, Catholic Health Initiatives, Orlando Health and Stratifi Health.

“Healthcare still needs a lot of work to become patient-centered and connected by organizing information and making it more accessible,” Innovaccer CEO and Co-Founder Abhinav Shashank said in a news release. “The vision of helping healthcare organizations care as one needs a connected and open technology framework. We are excited to be at the forefront of providing the tech platform for our customers to drive that change.”

Investors for the round included Tiger Global Management, Steadview Capital, Dragoneer Investment Group, Westbridge, Abu Dhabi-based investment firm Mudadala and M12. The latter, Microsoft’s investment arm, participated in Innovaccer’s series B round last year. To date, Innovaccer has raised a total of $120 million in capital.

“We are excited to partner with Innovaccer which is working with top care organizations in the U.S. to transform healthcare to value-based care,” said Ravi Mehta, founder and managing director of Hong Kong-based hedge fund Steadview Capital said in a news release. “By using their connected care framework coupled with their leading-edge data aggregation and analytics platform, they are unifying patient records and enabling care teams to coordinate patient care at a new level.”

Innovaccer also added a well-known healthcare executive to its board in the last month. The company named former Athenahealth CEO Jonathan Bush to its board on Feb. 7, according to Becker’s Hospital Review. Bush helped co-found the health IT company in 1997. He stepped down suddenly in 2018, facing allegations of misconduct and pressure from an activist investor to sell the company.

In the next few years Innovaccer’s goal is to generate 100 million unified patient records for 500,000 providers. The company claims it has generated more than $400 million in savings for its clients by automating workflows and helping better coordinate patient care.

Photo credit: ipopba, Getty Images

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