Seattle-based digital prescribing platform Xealth today announced that it has raised $11 million in a Series A financing round. The funds will fuel the expansion of Xealth’s platform, allowing it to better connect patients and doctors.
McKesson Ventures, Novartis, Philips, and ResMed are new investors in this round. They join existing investors Threshold Ventures (formerly DFJ Venture), Providence Ventures, UPMC, and Froedtert and the Medical College of Wisconsin Health Network.
Xealth allows clinicians to prescribe and monitor digital health care content such as apps, devices, and services, and integrate those interactions into a health system’s existing electronic health record charting interface. Xealth also allows these interactions to be recorded in health systems’ existing patient portals.
These digital health care activities can include patient education, online third-party apps and programs, device monitoring, and non-clinical services such as ride shares, food delivery, and e-commerce product recommendations.
“With these new partners joining our existing investors and customers, Xealth will be serving virtually every sector of the healthcare industry—providers, payors, pharma, devices, and supply chain, said Xealth CEO Mike McSherry. “The Xealth platform is quickly becoming the preferred ‘digital formulary.’”
McKesson Ventures sees the company as a player in the emerging “digital supply chain” that makes it possible to prescribe and monitor digital therapies, and makes the associated data streams actionable. Xealth helps to bridge the existing drug and healthcare products supply chain with the digital, which opens up a new set of digitally based treatment options that either stand alone or are used in combination with traditional therapies. Most importantly, McKesson said, the data feedback loop Xealth creates can empower care teams to make better care decisions and help stakeholders improve product offerings.
Investor ResMed was an early partner of Xealth at Providence, where the company is helping to care for the 40,000 Providence patients who are using CPAP machines to treat sleep apnea. Sleep specialists use CPAP data to help patients prepare for upcoming procedures as well as monitoring how regularly the patient is using the device and how well the CPAP is working.
Xealth was founded by Seattle startup veterans Mike McSherry and Aaron Sheedy, as well as Sundar Balasubramanian, and Eric Fuand. The two have been working together for more than 20 years, since they shared an office at Microsoft in the 1990s. They founded Xealth in 2017, at which time the company had 12 employees. Now it has 40. The company’s growth reflects a broader surge in interest in healthcare by people and companies from the tech industry.
“If you can more seamlessly engage with the patients digitally, like they’re used to in their consumer lives, you’re providing a better patient experience,” McSherry said “But that also gives the hospital system a 360-degree view of the patient’s health.”
Xealth has raised $19.5 million to date, including $8.5 million in 2017.
Read the original press release here.
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