Neither of those sound like good news for Oracle Health. After the lofty proclamations of the last couple years. still…
Morning Headlines 12/16/21
Analytics and interoperability vendor Innovaccer raises $150 million in a funding round that brings its total raised to $375 million.
Cloudmed Acquires par8o, Advances 340B Discovery Capabilities for Healthcare Providers
RCM company Cloudmed acquires provider referral management technology vendor Par80.
Embold Health Raises $20M in Series B Led by Echo Health Ventures
Physician performance analytics company Embold Health raises $20 million in a Series B investment round, bringing its total funding to $50 million.
Revenue cycle automation startup Janus Health raises $8 million in a Series A funding round.
Re: Innovaccer fund raise.
I love their founding team – humble, unpretentious and willing to learn and get to work. Very unlike a lot of flashy/splashy tech founders that we see in our industry.
I still don’t quite understand their business model which seem to be some sort of enabling value based care through a cloud based data platform. A – not sure how real it is. B – haven’t a dozen other startups have done exactly the same or trying to do it. C – There’s really nothing stopping Epic or Cerner to do something similar in a relatively short time.
The reason they’ve not done so is that regardless of all the smart people talking about value based care, they know that overwhelming amount of $s are still getting processed through FFS. That’s the reason why Cerner’s HealtheIntent and Epic’s Healthy Planet didn’t go anywhere and most other startups claiming to do value based care pivoted to up coding via HCCs (or MA or had to include care delivery in their business model).
Once the economics is there, Epic’s gonna get it done and because of its already in place connectors to major health systems and payers, will have a huge leg up over Innovaccer’s of the world. So the $3.2 B valuation makes no sense whatsoever.
Still – best of luck to their team. May the best data cloud win.
I would guess that 20% of healthcare orgs deliver 80% of the profits in healthcare analytics software. And that most revenue for healthcare analytics occurs during periods of shifting government regulation. So it is important to have the right product in the right market at the right time. Speaking of right market at right time, telehealth companies slogged through the last two decades trying to convince health systems to take them seriously. COVID hit, and existing telehealth vendors took in huge revenue and returned huge amounts to their investors. Now there are hundreds of telehealth companies entering the market, there is Microsoft and Zoom, etc. And of course Epic is beefing up their MyChart video integration. How much of the total historical value of the telehealth market will Epic capture with that Mychart video integration? I dunno. How much of the ACO/quality/MSSP/etc. market did the EHR vendors miss because Health Catalyst soaked up those dollars? I dunno either. The pace at which Epic and Cerner take in information, recognize opportunities and deliver software is well suited to the glacial pace of procurement at large health systems and change in the healthcare market. But I think we can all agree that Epic and Cerner don’t get new product changes out in a “short time”. Off VB6 when?