Seattle-based Xealth has raised $3 million in Series A financing from the following investors:
- Atrium Health
- Cleveland Clinic
- Memorial Care innovation Fund.
This tops off Xealth’s Series A to $14 million as reported by the company. Previous Series A investors included an impressive list of investors including Novartis, Philips, McKesson Ventures, ResMed, Threshold Ventures (formally DJF), Providence Ventures, UPMC, and Froedtert & the Medical College of Wisconsin health network.
What follows is a brief overview of the venture in Q&A format.
Who is Xealth? Why are they Attracting so Many Big Name Corporate Investors?
They are a spin-off from Providence St. Joseph Health. They developed a digital platform that clinicians can prescribe device monitoring tools, patient education information, online third-party apps and non-clinical services such as food delivery and ride shares.
Moreover, the developers designed monitoring and analytics capabilities so healthcare organizations can determine which strategies are working and how to optimize results.
Who Are Some of their Customers?
UPMC, Providence St. Joseph Health, Duke Health, Medical College of Wisconsin, and Hennepin Healthcare, among others. For example, Atrium Health utilizes the innovative platform to provide the best care possible to patients—both inside the clinic environment-and outside.
What Was its Initial Focus?
A cloud-based software startup, it aims to make physician prescribing a diabetes management app as easy for doctors as prescribing insulin. By 2017 it had raised $8.5 million. Its’ EHR strategy with Epic Systems in Verona, WI. It allows doctors to prescribe healthcare apps, content, and digital medical services that have been approved by their hospital systems directly from within the EHR—a powerful concept.
If a doctor believes a specific app may be good for a patient, the doctor would before referring the patient to an app store, for example. This is a clunky process. Now that all of the apps, content, and services can be consolidated and managed in a secure, web-based integrated platform, the management, compliance and engagement process becomes incredibly valuable. The platform enables web-based single sign-on for all of these different digital services accessible by a patient smartphone app.
What is Unique about this Digital Application Platform?
With the proliferation of digital health tools, healthcare organizations need a simple way to simply and securely manage and drive utilization of these initiatives. Xealth’s platform is embedded into the EHR, so clinicians can prescribe and monitor digital health content, apps, devices and services within their charting workflow. Of importance, providers can implement and tailor Xealth to consume these assets to the provider’s existing patient portal to drive engagement and increase adoption. These capabilities plus onboarding for new digital care vendors in a fraction of the time, enable the delivery and measurement of digital care solutions.
The Xealth platform is integrated into the clinician’s workflow—the vendor sought to “bridge the digital gap between the clinician’s workflow and the patients’ everyday life.” Xealth is adopted so that health providers can improve health and improve the consumer experience of healthcare.
A key premise in value-based care is the “well-informed patient.” The provider must deliver the right materials or experience to the patient at just the right time; the provider must possess the analytics to understand that the patient has viewed or interacted with the information or experience. A deeper connection between provider and patient is a natural requirement within a value-based care paradigm. The platform apps and information integrate seamlessly with patient smartphones or desktop.
Xealth enables a change in patient behavior of vital importance for the success of value-based care.
Why is Xealth the Preferred Digital Health Formulary?
As Mike McSherry, CEO of Xealth notes, “Xealth works with stakeholders across all areas of healthcare, including providers, payors, pharma, devices, and supply chain.” He continued, “This gives Xealth insight and perspective that advances digital health strategies in a way that optimizes outcomes and assists physician workflows.
Xealth powers more than 30 digital health solutions, connecting patients with educational content, transportation, meal delivery, e-commerce product recommendations and other services needed to improve health outcomes.
How Many Employees?
Although they are privately held and do not disclose such confidential information, based on our searches we suspect they have between 40 and 60 employees, they could have more. According to CrunchBase, the venture has up to 50.
What are their Revenues?
They are privately held and don’t readily disclose this information publicly. We suspect that they generate $3.5 to $7 million but that their cost structure is still a bit higher. Hence the venture capital will go to product development and intensified commercialization to drive growth and shareholder value.Source: