MIAMI, Jun 18, 2013 — CareCloud, the fastest-growing provider of cloud-based practice management, electronic health records (EHR), and medical billing software and services, today announced it has secured $20 million in Series B financing. The funds will fuel the Company’s continued aggressive growth across all business functions, with a focus on product development while also bolstering sales and marketing capabilities. The funding round was led by Tenaya Capital and included existing investors Intel Capital and Norwest Venture Partners. This round brings CareCloud’s total funding to $44 million. Stewart Gollmer, Tenaya Capital’s Managing Partner, will join CareCloud’s Board of Directors.
“Most of the U.S. healthcare system is shackled with decades-old technology that will hinder us from improving patient care or delivering on cost containment efforts in a rapidly-changing environment of reform,” said Albert Santalo, CareCloud’s Chairman and CEO. “This investment validates CareCloud’s mission to aim at the heart of the challenge by leveraging the power of the cloud to foster innovation and ultimately replatform the industry. I am very pleased to welcome Tenaya Capital to our strong base of investors.”
CareCloud’s cloud-based platform now powers close to 3,000 providers in 45 states as medical groups look to improve their operational and clinical outcomes amidst a rapidly changing healthcare reimbursement environment. CareCloud manages more than $2 billion in annualized accounts receivables on behalf of its clients leveraging its cloud-based revenue cycle management service. The Company’s award-winning platform currently supports more than 5 million unique patients that will be increasingly engaged through the Company’s CareCloud Community offering that allows for greater care coordination and is the cornerstone of CareCloud’s vision to be the industry’s Single Log In for Healthcare.
“Technology will play an increasingly significant role in the transformation of how healthcare is delivered and paid for in this country. It’s clear that the current solutions are either decades old client-server technology or outdated web-based architecture,” said Gollmer. “CareCloud and its modern platform represent a tremendous opportunity to bridge the technology gap that plagues the healthcare ecosystem. We are excited to invest in CareCloud and feel that the company represents a powerful combination of industry-leading vision and exemplary execution, driven by a remarkable team.”
Physicians See Better Billing, Technology As Keys To Higher Performance
The May 2013 Practice Profitability Index (PPI), which serves as an annual barometer for the operational wellbeing of U.S. medical groups in the year ahead, surveyed more than 5,000 physicians across the nation and uncovered a downward trend in profitability for the year ahead, which is driving a growing “rip and replace” market for technology. It found that, of the 41% of practices with specific plans aimed at operational improvements in the coming year, the main interventions are: implementing a new EHR (41%), replacing their existing EHR (25%), outsourcing billing/collections (18%) and replacing their practice management system (16%). Furthermore, the majority of physicians (52%) are uncertain if their practice management systems will accommodate regulatory changes in the year ahead. The complete 2013 PPI findings can be accessed at www.poweryourpractice.com/PPI.
Tenaya Capital is a leading venture capital firm with a history of investing in disruptive and category-leading companies including HubSpot, Zuora, RightScale, and Zappos. Intel Capital and Norwest Venture Partners led CareCloud’s $20.1 million Series A funding in September of 2011.
About Tenaya Capital
Tenaya Capital is a leading venture capital firm with offices in Woodside, California, and Boston, Massachusetts. Founded in 1995 as Lehman Brothers Venture Partners, they became an independent company in 2009. Over the years they’ve raised five funds representing over $1 billion of committed capital, investing it in a wide range of high-growth technology companies including software, consumer Internet, communications, semiconductors, electronics, and cleantech. For more information visit www.tenayacapital.com.