Health Catalyst, a Silicon Slopes, Utah-based provider of next-generation data, analytics and improvement, today announced it has raised $100 million in Series F equity and debt funding led by OrbiMed. The funding also included participation from Sequoia Capital, Norwest Venture Partners, Sands Capital Ventures, UPMC Enterprises, and Kaiser Permanente Ventures also contributed to the financing, which lifts Health Catalyst’s value above $1 billion. Health Catalyst plans to use the funding to expand their data analytics platform and services offerings for healthcare transformation to support its mission of massive, sustained clinical, financial and operational improvements in the performance of healthcare organizations.
The Health Catalyst Data Operating System (DOS™) Solution
Healthcare organizations are among the most complex enterprises in the world that digital disparity leaves hospitals, health systems, and physician practices accountable to make high-risk decisions with untimely, incomplete, and inaccurate data. Patients, for their part, are mostly left out of a data ecosystem that could help them be more accountable and engaged in their own care. Hospital margins are shrinking, clinicians are overworked and over-measured, and healthcare systems need more and more data sources to manage risk and population health initiatives.Traditional data warehousing, which solved some of these problems, is no longer good enough. According to Gartner, traditional data warehousing will be outdated and replaced by new architectures by the end of 2018. And current applications are no longer sufficient to manage these burgeoning healthcare issues.
Formed by a group of healthcare veterans with vast data warehousing and quality improvement experience, Health Catalyst’s data warehouse and application development platform powered by data from more than 100 million patients and efficiency and lower costs for organizations ranging from the largest US health system to forward-thinking physician practices.
“As more healthcare organizations are coming to understand, the future of healthcare will rely on the broad and more effective use of their vast stores of data,” said Health Catalyst CEO Dan Burton. “This additional capital will enable us to continue developing the technology and expertise necessary to offer health systems a path to systematically use data to analyze their performance, and then work to make measurable improvement in clinical, financial and operational areas. It will also help to support our expansion, already underway, into the life sciences and international markets.”
Over the past year, Health Catalyst has experienced over 65% growth in its annual recurring revenue, over 50% growth in revenues, and over 80% growth in its gross profits. The company also added sixteen new health system customers in 2018, more than in any previous year in the company’s 10-year history. Health Catalyst also added over 200 team members in 2018, to end the year with nearly 750 team members throughout the US. Also during the year, Health Catalyst’s customers realized over 250 documented clinical, financial and operational improvements. In addition, Health Catalyst added significant new capabilities, talent, and customers with its acquisition of Medicity, one of the nation’s largest population health management companies with solutions for health information exchange (HIE), business intelligence, and provider and patient engagement.