Health Catalyst, a provider of healthcare data warehousing, analytics and outcomes improvement, announced it has raised $70 million in funding led by existing investor Norwest Venture Partners. The round also included contributions from other existing investors Sequoia Capital, Kaiser Permanente Ventures,Sorenson Capital, CHV Capital (an Indiana University Health Company) and Partners HealthCare. Also participating in the round were new strategic investors Sands Capital Ventures, Tenaya Capital, Epic Ventures, and Leavitt Equity Partners.
The capital will be utilize to fuel significant continued product development investments, particularly in areas of advanced clinical and workflow applications designed to measurably improve clinical and financial outcomes. As hospitals and health systems adjust to recent cuts in Medicare and Medicaid rates, and the rise of new value-based care models, Health Catalyst’s solutions drive permanent improvements in the efficiency and effectiveness of care delivery and population health.
The company was founded in 2008 by a group of healthcare veterans with vast data warehousing and quality improvement experience. After determining that the predominant approaches to data modeling weren’t effective for healthcare data, they discovered the solution, which is now known as the Adaptive Data Architecture. Using a late-binding bus architecture, Catalyst’s adaptive data model is agile, flexible, and can be implemented in a matter of weeks compared to the months or years traditional approaches require.
Today, the Salt Lake City-based data warehouse platforms aggregate and harness massive amounts of data utilized in population health and ACO projects in support of over 30 million unique patients. Health Catalyst platform clients operate over 135 hospitals and 1,700 clinics that account for over $130 billion in care delivered annually.
“We are thrilled both that our existing investors chose to continue their relationship with us, and that significant new investors are joining our effort to advance major innovations for US healthcare,” said Health Catalyst CEO Dan Burton. “We were honored to be significantly oversubscribed for this latest round of financing, and are grateful for the market validation of the effectiveness of Health Catalyst’s platform and solutions. As more healthcare organizations are coming to understand, data warehousing and analytics are foundational to their success under new payment and risk models. This additional capital will enable Health Catalyst to develop the solutions necessary to offer every health system in the US a roadmap to systematically reduce waste and improve care delivery, across every major clinical and workflow area,” Burton said.
