Change Healthcare, a Tennessee-based company trying to encourage more consumerism and cost transparency in healthcare has raised a $15 million Series D round of funding.
On Tuesday, the company said its latest round, which brings its total amount raised to $32 million, was led by HLM Venture Partners and new investor Noro-Moseley Partners. It also included existing institutional investors BlueCross BlueShield Venture Partners, Sandbox Industries, Mitsui & Co. Global Investment, Inc., West Health Investment Fund, LLC, and Solidus Co.
Launched in 2007, the company provides employers and health plans with web-based tools for enabling employees and members to cut costs when it comes to the their healthcare expenses. Similar to startups like Castlight Health and ClearCostHealth, it analyzes historical claims data to help patients comparison shop for procedures and services. If you need a knee replacement, for example, it could tell you where to go for the cheapest surgery, how much you’d need to pay out of pocket and information on the quality of the facility and healthcare provider.
Cost transparency in healthcare has become an increasingly hot topic. As health care costs climb and employers shift to high-deductible health plans — and with the upcoming opening of the health insurance exchanges — consumers need more tools and information to make health-related decisions. Time magazine’s widely-read March story on medical billing and the government’s decision to release more data revealing hospital charges have also put more national attention on the issue.
“The broader push in the market… has really stimulated demand,” said Ghertner, adding that in the last 12 months, the company’s user base has grown from several hundred employees and members to millions. With the new funding, he said, the company plans to expand sales and marketing and focus on product development.