Verato Secures $10 Million Investment to Continue Mission of Eliminating Duplicate Medical Records and Improving Quality of Patient Care
Recent investment and surge of new customers affirm the need for a next-generation patient matching technology to improve patient safety and greatly increase the efficiency of healthcare providers and payers
MCLEAN Va., Jan. 07, 2019 (GLOBE NEWSWIRE) — Verato, Inc., a leading provider of cloud-based patient matching and master patient index technology, today announced that it has raised $10 million in Series C financing. The round was led by existing investors Bessemer Venture Partners and Columbia Capital with participation from Blue Heron Capital and California Health Care Foundation. The funding will be used to accelerate the adoption of Verato’s revolutionary new technology by all segments within healthcare – providers, health plans, healthcare services firms, and healthcare technology companies.
Patient matching is the process by which health data is accurately linked and attributed to the correct patient. This allows physicians, care managers, claims processors, and ACOs to have a complete picture of the patient and ultimately to care for patients with maximum success, efficiency, and safety. Duplicate records are the result of poor patient matching and cause many different personas for a patient throughout the health system – and none of them provide the full picture of a patient’s health history. On average, 18% of a health system’s records are duplicates, meaning almost one in five patients do not have a complete medical record – and that number degrades to half of patients when trying to assemble a composite record between health systems during information exchange. Duplicate records cause a third of claims denials, costing health systems $1.5 million annually, in addition to costing roughly $2,000 per inpatient stay. Duplicate records also drastically increase patient safety issues and add significant costs to healthcare due to redundant testing and procedures.
The funding caps another year of significant growth for Verato, which acquired 20 new customers in 2018. With the addition of these customers, Verato is now enabling more accurate and complete health information for leading providers, health plans, and health information exchanges which care for over 100 million patients across the U.S.
“This investment is an exciting next step for the company and a strong endorsement of the market need for a next-generation technology to solve the patient matching problem,” said Mark LaRow, CEO of Verato. “Existing patient matching technology has not changed for almost a decade and is the root of the duplicate record crisis that is drastically affecting care quality, patient safety, and healthcare costs. We cannot continue with business as usual. It’s not good medicine for patients and it makes healthcare unnecessarily inefficient. With Verato, a new solution finally exists, and this funding will help us ensure we solve this problem in healthcare once and for all.”
Verato offers a cloud-based matching platform that links and matches identities across disparate sources with the highest accuracy rates in the industry. Verato leverages an extensive self-learning database of U.S. identities as a reference, or universal answer key. And because it is cloud-based, the Verato platform is less expensive, faster to implement, and more scalable than traditional matching technology. Verato is based in McLean, VA.
About Bessemer Venture Partners
Bessemer Venture Partners is the world’s most experienced early-stage venture capital firm. With a portfolio of more than 200 companies, Bessemer helps visionary entrepreneurs lay strong foundations to create companies that matter and supports them through every stage of their growth. The firm has backed more than 120 IPOs, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Wix, and MindBody. Bessemer’s 15 partners operate from offices in Silicon Valley, San Francisco, New York City, Boston, Israel, and India.
About Columbia Capital
Columbia Capital is a sector-focused primary investment firm based in Alexandria, VA that specializes in enterprise IT, internet infrastructure and mobility investments. The firm undertakes a thesis-driven approach to investing, identifying dynamic market opportunities and partnering with proven executives to build companies that capitalize on both organic and inorganic growth opportunities within the sector. Over its 30-year history, Columbia has raised over $3.1 billion in capital and has invested in over 150 companies.
About Blue Heron Capital
Blue Heron Capital is an operationally-focused private equity firm based in Richmond, VA that invests in healthcare and technology-enabled business service companies. Blue Heron supports portfolio companies with a team of proven industry experts, including C-level executives and successful entrepreneurs with decades of experience building and managing vibrant businesses.
About the California Health Care Foundation
The California Health Care Foundation (CHCF) is dedicated to advancing meaningful, measurable improvements in the way the health care delivery system provides care to the people of California, particularly those with low incomes and those whose needs are not well served by the status quo. CHCF works to ensure that people in California have access to the care they need, when they need it, at a price they can afford.