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Cureatr Gathers $13M Series B for Care-Coordination Technology
by Brian Gormley
June 25, 2015
Health-care providers have more incentive than ever to coordinate patient care and lower costs, two goals that Cureatr Inc. aims to help them achieve after raising $13 million in Series B financing.
New investor Deerfield Investments led the round, which included new backers Cerner Capital, Windham Venture Partners and an undisclosed strategic health-care information-technology investor. Prior backers Cardinal Partners , JMI Services and Milestone Venture Partners also participated. Cureatr formed in 2011 and raised a $5.7 million Series A financing in 2013.
A provision of the federal health-care law requires Medicare to cut payments to hospitals with excessive readmissions. Meanwhile, accountable-care organizations established under the law enable health systems to share with Medicare the savings they create by better coordinating the care patients receive from various doctors.
The goal of care coordination is to eliminate unnecessary tests and to ensure that patients receive treatments they need. This may help reduce avoidable hospitalizations and readmissions. The health- care law encourages this coordination through incentives. Cureatr encourages it through its mobile care- coordination platform.
Today, primary-care physicians and other members of a patient's care team don't always know when that patient is being treated in a hospital. Cureatr's Care Transition Notifications alert them on their mobile device or desktop computer. The company's messaging system also enables them to respond to these notifications and collaborate with other doctors or caregivers, according to co-founder and Chief Executive Joseph Mayer .
The messaging system complies with the federal Health Insurance Portability and Accountability Act, which protects the privacy of individually identifiable medical information. Other startups with mobile- communications systems used by health-care customers include TigerText Inc ., whose secure, mobile- messaging system is used by health systems such as Universal Health Services .
Cureatr, based in New York, is partnering with hospitals and health-information exchanges to establish a network that enables it to notify care-team members when a patient is admitted to the hospital, discharged from it, or transferred to another medical center. The company, which launched its first Care Transition Notification network in New York, is expanding by working with organizations such as Denver- based health-care services company DaVita HealthCare Partners Inc.
In March, Cureatr said it had expanded its relationship with DaVita , which had begun with a pilot program. DaVita is now using Cureatr's system across its enterprise. Cureatr's system helps DaVita track patient emergency-room visits, missed treatments and other care-transition events.
Deerfield Principal Alex Kristofcak is joining the Cureatr board.