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The company raised $100 million in the initial Series C tranch in April
There has been an explosion of data and technology in healthcare but, for the most part, that hasn't made it's way into the operating room. There are a number of reasons why that's happened, including that, while a lot of the innovation in healthcare has been more around expensive medical treatments, there has been less emphasis on looking at surgery, where a lot of the technology innovation has been geared towards trying to develop better devices and implantables.
Caresyntax wants to change that. The company uses software and data to improve operational outcomes, clinical outcomes, and financial outcomes within the operating room. The platform serves surgeons and the hospitals that they practice at, as well as insurance companies and medical technology companies, with the goal of bringing all of these groups together.
Its solution has attracted the attention of investors, as the the company announced a $30 million extension to its Series C round on Thursday. The new funding came from BlackRock Funds and ProAssurance, while the original $100 million Series C funding round in April came from PFM Health Sciences LP, Optum Ventures, Intel Capital, Lauxera Capital Partners, Vesalius Biocapital III, Arno Capital, Rezayat Investments, IPF Partners, the Relyens Group, and Surgical.AI.
This brings its total capital raised to $207.5 million.
"Since the initial Series C round, Caresyntax has continued to prove its position as the leading enterprise-level digital surgery platform, building new partnerships and releasing research showing that hospitals using their analytics technology retained 16 percent more of their surgical caseload through July 2020, versus the national average drop of 35 percent," Dennis Kogan, the company's co-founder, Chairman, and CEO told VatorNews.
Founded in 2013, Caresyntax supports all aspects of the surgical experience, from prep, to the operation itself, and the post-op.
The company is able to see what's happening with the patient as the surgery is being scheduled and its intraoperative product, which is used during the procedure, can help with setting up a room and managing checklists. The technology also gives the surgeon a better line of sight during the surgery via video, image and audio. The real-world evidence gathered by Caresyntax can be used by the care team live, during a procedure, and accessed by those outside the operating room via the platform’s telehealth link.
After the procedure is done, the Caresyntax platform provides insights that help surgeons improve their care, hospital administrators use surgical resources more efficiently, medical device companies advance better products, and insurance companies understand risk so they can devise more tailored policies.
"While the need for OR data insights has always existed, the COVID-19 pandemic has underscored just how important these insights will be for hospitals to recover," Kogan said.
Caresyntax software is currently used in more than 4,000 operating rooms worldwide and supports surgical teams in over two million procedures per year.
One of its customers, Saint Thomas Hospital in Tennessee, saw a $500,000 decrease in FTE, a 40% decrease in after-hours cases, and 20% increase in first case on-time starts after using Caresyntax. Another of its customers, the NCH Healthcare System, saw a $2 million annual anesthesia subsidy reduction, a $1 million annual staffing costs reduction, and a 10% case volume increase.
The company also has a number of international clients, including Relyens, one of the largest medical malpractice reinsurers in Europe, which relies on the platform to help manage surgical risk utilizing its platform for video and other real-world data based assessments linked to patient outcomes. Caresyntax also works with The University Hospital of Strasbourg, which has used Caresyntax's software applications to document orthopedic training, which has led to better scores, an optimized learning curve, and improved risk management.
The company plans to use funding to continue developing its platform, as well as to "advance new data solutions that support value-based care providers."
"We plan to use the latest round of funding to continue developing our platform as well as advance new data solutions that support value-based care providers. In the next few years, we plan to deepen and expand our partnerships with health systems and continue to develop our technology to make surgery smarter and safer," said Kogan.
(Updated with comment from Caresyntax CEO Dennis Kogan)
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