The company plans to open clinics in New Jersey, Connecticut, and Maryland next yearRead more...
The company can help its customers know who is using their devices, and how it's performing
One theme emerges over and over about data in healthcare: while data is growing exponentially, it's also still siloed. Different systems use different EMRs, and even within the same hospital or health system information isn't easily shared between departments.
This is also true when it comes to medical devices, which leads to a major information gap, said Mike Monovoukas, CEO and co-founder of AcuityMD, a platform that allows medical devices to share information with each other, which raised a $7 million round of funding on Monday.
"Manufacturers, healthcare providers and payers all have different insights about medical devices and their performance, but there’s no way to connect them all into a holistic picture," he said.
On the manufacturers' side, they don't have long-term visibility into how their products improve the quality of life for the patients they serve. What they do have is data about each device, and where it’s being used, but they lose visibility on the patient after the sale.
"Most medical device companies don’t even know which doctors are using their products," said Monovoukas.
On the provider side, they get trained on the newest medical technologies and techniques in their Residency and Fellowship programs, but then they need to go out of their way to keep up with the increasing pace of innovation. Plus, not all doctors have the time or resources or the interest to do this. Finally, while payers reimburse healthcare providers based on the procedures they do, but don’t know which products were used on the patient in these procedures.
"They are trying to manage the variability in cost and patient outcomes across providers, but don’t have the full picture on what is driving those differences. Imagine your auto insurer not knowing the make and model of the car you drive," said Monovoukas.
"Closing this information gap is something that will be good for the medical device industry and ultimately better for patient outcomes."
AcuityMD's solution is to create a data platform for the entire medical device lifecycle: from sale to surgery to patient outcomes, with the goal of ensuring better quality medical devices, and, in turn, more successful medical procedures, high recovery rates and lower medical costs.
"We’re connecting the industry and facilitating the trading of information across all parties."
The company's provides its customers, which are medical device manufacturers, including several Fortune 500 companies, with a curated platform of data based on their specific needs and industry, as well as access to a software platform and curated data to target new sales opportunities, identify existing product users, and over time, better understand the performance of their products in the market.
AcuityMD doing this by pulling external data from public data, partnerships with proprietary data aggregators, Medicare claims through CMS research, and integrated with data generated from the manufacturers.
"Normally, the data these manufacturers have is downloaded and tracked in Excel from their sales team. By bringing all of this other data together, they can easily target new sales opportunities, and over time, understand the performance of providers who use, or don’t use, their products," Monovoukas explained.
The platform can be tailored to serve any market vertical, including orthopaedics, spine, biologics, surgical imaging, endoscopy and more.
For example, a company focused on orthopedics will have a platform with data about relevant orthopedic surgeons, hospitals, who is and isn’t using their devices, and medical claims data related to their use. This ultimately helps them target relevant surgeons and hospitals that can benefit from their product, or may need to get updated information and training about the device they’re already using.
The $7 million round, which is AcuityMD's first institutional round of funding, was led by Benchmark, with participation from Ajax Health. In conjunction with the funding, it was also announced that Eric Vishria, General Partner at Benchmark, joined AcuityMD’s board of directors.
"Eric has a deep understanding of data and enterprise businesses. His track record speaks for itself as an early investor in companies like Benchling, Amplitude, and Confluent, just to name a few. He understands the problem we are dedicated to solving and is someone who acts like a true partner; he’s not afraid to get into the trenches with you through the company building. The insight and skills he brings will help us to reach our potential," said Monovoukas.
AcuityMD will use the funding to accelerate hiring, with the goal of doubling is eight member team by the end of the year, with a focus on product and engineering. It will also continue to invest in product development, securing numerous new medical device enterprises and manufacturers, and continue expanding across all medical device verticals.
Part of what is making a solution like AcuityMD viable now is the move from a fee for services healthcare system to a value-based system; that includes recent ACA regulations that have started a shift to pay based on performance and quality.
That means that, in the coming years, medical device manufacturers will be increasingly held accountable for the outcomes of their products, said Monovoukas. They can’t improve the things they can’t see, so it’s critical to create this system of record to be prepared for this coming wave.
"Ultimately, if we succeed we’ll help medical device businesses while also helping patients. Closing this gap of information means we can help manufacturers put proven devices in the hands of more doctors, better train doctors on techniques and products that can treat their patients, and ultimately improve their products based on long-term patient outcomes. Improving those outcomes is the ultimate success."
(Image source: acuitymd.com)
Support VatorNews by Donating
Read more from our "Trends and news" series
Practices can increase their business through memberships, patient financing, and mobile rewardsRead more...
The initiative will monitor patients hospitalized for bone marrow transplant and hematology as wellRead more...