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In one of the biggest digital health deals of the year, electronic health records company Practice Fusion has raised $70 million in a Series D round led by Kleiner Perkins Caufield and Byers. The round, which brings the company’s total amount raised to $134 million, is meant to help Practice Fusion expand to more patients and fuel more clinical data research and development.
In addition to existing investors like Artis Ventures, Morgenthaler Ventures and Felicis Ventures, the company said institutional healthcare crossover funds OrbiMed Advisors and Deerfield Management Company also joined the round as new investors. The news comes a few months after VentureBeat reported that the company was raising $60 million in a Series D round.
As we’ve covered before, plenty of companies – from new startups like ElationEMR and CareCloud to legacy firms like Cerner and Epic – offer services for digitizing medical information. But, over the past few years, Practice Fusion has been steadily growing its numbers. Now, it says the service is used by more than 100,000 monthly active medical professionals serving 75 million patients. Since 2012, the company adds that it has boosted revenue by 300 percent.
Given the amount of money it’s raised and its momentum, many in the industry believe it’s the digital health company that’s closest to making a public debut.
Without sharing any specific timeline, founder and CEO Ryan Howard said, “The intent of the company is definitely to bring it to the public market. Over the next few years, the company is really focused on that next goal.”
The company’s fast adoption can be attributed to its free service, which has been mainly supported by advertising. But Practice Fusion’s real advantage is in the patient data it collects and analyzes. For example, its data trove includes information on the medication doctors prescribe, why they switch between treatments and the ways in which patients in different demographics respond.
This year, the company also launched a patient-facing doctor appointment-booking site and health expense management tools. And data from those services will further offer interesting insights into patient health trends and healthcare costs.
The company provides access to its (de-identified and aggregated) data through a relatively new analytics product, but its data can also help medical professionals, pharmaceutical brands and other healthcare organizations reach patients with highly-personalized and targeted information.