November 15, 2016
Written by Nancy Dahlberg
To that end, CareCloud, a Miami-based management platform for high-growth medical groups, announced Tuesday it has raised $31.5 million to finance its continued growth. Investors include a diversified financial services leader, The PNC Financial Services Group, and commerce technology giant First Data Corporation. Blue Cloud Ventures joined as a new investor and led the round.
With this capital injection, CareCloud has raised about $102 million since its founding in 2009. The company’s prior investors participated in the new Series C financing round, including Norwest Venture Partners, Intel Capital, Tenaya Capital and Adams Street Partners. Earlier this year, the company previously entered into a $15 million debt financing agreement with Wellington Financial and that was included in this round.
The homegrown healthcare technology company will use the new capital to rapidly grow its team and its clinical and financial platform, said Ken Comée, who took the helm as CEO in April 2015.
“We are seeing more and more that patients are becoming payers. Our deductibles are rising faster than ever. Where just a few years ago we were paying a $20 or $30 co-pay, 4 percent of our overall bill, now we all face potentially thousands of dollars a year in medical deductibles,” said Comée, in an interview Monday.
“Doctors are ill-equipped to have that consumer-oriented point of sale, and that is where we are focusing our growth — the patient payment side of healthcare technology,” Comée said, adding that the company released a research paper Tuesday on the trends. “We’re modernizing the healthcare experience for both physicians and patients at the precise point where care happens — the medical practice.”
CareCloud’s cloud-based platform streamlines workflow for medical practices — everything from electronic health records to accounting and insurance to patient interaction — and is tailored to medical groups focused on expanding operations, especially in cardiology, general surgery, orthopedics, dermatology, ophthalmology, neurology, internal medicine, urology and family medicine specialties. “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,” Comée said.
CareCloud, founded by Albert Santalo, currently manages more than $4 billion in annualized accounts receivables. CareCloud now has nearly 300 employees, about 200 of them in Miami, said Comée. He declined to disclose revenues, only saying that the company is selling to multiple growing multi-million-dollar practices.
Previously, Comée was CEO at Cast Iron Systems, a cloud integration company acquired by IBM. He was also CEO of PowerReviews, a leader in product ratings and reviews, also acquired, and CEO of Badgeville, a gamification startup. Before assuming the helm of CareCloud, he was a CareCloud board member, investor and operational adviser for three years.
While the $20 billion-a-year marketplace is crowded with competitors, Comée said many of the traditional players still use 20- or 30-year-old technology. “They aren’t growing; they are not taking on new business,” he said.
To be sure, the fast-moving tech company has suffered growing pains with reports of layoffs and turnover in the past three or four years. Still, Comée said CareCloud has hired 118 people since he came aboard. In August, the company held an inaugural weekend hackathon for the company and community with cash prizes, and ended up hiring three people.