November 15, 2016
Written by Sarah Buhr
CareCloud, the revenue management and health IT platform, announced it has raised $31.5 million in strategic Series C financing from The PNC Financial Services Group, Inc., First Data Corporation and Blue Cloud Ventures.
Previous investors also participated in the round, including Norwest Venture Partners, Intel Capital, Tenaya Capital and Adams Street Partners. The company previously entered into a debt financing agreement with Wellington Financial to provide access to additional growth capital.
CareCloud launched in 2009 to help connect physicians to electronic health records. It now manages more than $4 billion in annualized accounts receivable on its integrated clinical and financial platform but faces stiff competition from PracticeSuite and larger EHR managers such as Practice Fusion. dealing with the sometimes overwhelming electronic records filing within medical practices.
Each health IT management system approaches the sometimes overwhelming electronic records filing within medical practices in similar ways, but with nuanced differences. CareCloud aims to become “the single log-in for healthcare” and offers a real-time patient flow chart system.
CareCloud intends to use the money to “further modernize healthcare” — meaning it will be looking for new opportunities in a shifting healthcare marketplace to continue growing the business.
The startup believes patients are becoming increasingly responsible for healthcare costs and has outlined the change in the market in a new research paper “The New Medical Economy” to illustrate the changes. At the same time, there’s a lot of uncertainty in the market with a shift in regulations, particularly in the impact a Trump presidency might have on health care and how the abolishment of the Affordable Care Act may affect millions of patients.
“We’re modernizing the healthcare experience for both physicians and patients at the precise point where care happens — the medical practice,” CEO of CareCloud Ken Comée says. “To simplify and improve the process of delivering and financing health care within a rapidly changing ecosystem, you need a technology platform that is flexible with tools as easy to use as we see in banking, shopping and our other everyday activities.”