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Over 100 million Americans face some kind of barrier to getting care, which can be attributed to rural hospital closures and physician shortages. On top of that, health systems are confronted with rising costs that outpace growth, and a digital-care experience that falls short of post-pandemic consumer expectations.
DexCare is a healthcare access intelligence company that was created as an environment where all patients can get the best treatments and care. It does this by combining digital health applications and interoperable operating systems so that health systems and providers can deliver care that is targeted, cost-effective, and personalized.
On Wednesday, the company revealed that it raised a $75 million Series C funding round led by ICONIQ Growth, along with participation from existing partners Transformation Capital, Kaiser Permanente Ventures, Define Ventures, Frist Cressey Ventures, and SpringRock Ventures. This round brings the company's total funding raised to $146 million, including two oversubscribed rounds closed in less than two years.
"We’re thrilled to have ICONIQ Growth lead this round. They have a history of investing in category leaders and disruptors, and supporting those companies as they continue to scale. Their strategic guidance and health-tech expertise will allow us to advance our platform, serve more patients and healthcare providers, and think bigger about how we live up to our mission," Derek Streat, CEO of DexCare, told VatorNews.
"We’ve embarked on a bold mission, and alongside ICONIQ Growth and our partners, we’re determined to usher in a new era of digital-care delivery."
For Streat, the fact that DexCare was able to raise an oversubscribed round in a tough funding environment, "speaks loudly of our collective work and the positive change" that DexCare is seeking to make.
"As financial markets tighten, DexCare remains on a steep growth trajectory, a testament to our mission and the market demand for our platform. Today, data intelligence is no longer a luxury, but an operational imperative to underpin decision making, the ability to transform, and to fuel innovation. And in healthcare – an industry beset by data isolation – the analytics of care delivery is more important than ever," Streat said.
"Our emergency rooms are overflowing. Patients are now shoppers. And we’ve reached distressing levels of doctor and nurse burnout. By creating data linkages to track and orchestrate the allocation of care -- across physicians, nurses, services and modalities -- health systems can regain the cost controls to grow. Only then can we alleviate workforce pressures, and deliver the right care, at the right time, in the right setting."
In conjunction with the new round, Caroline Xie, general partner at ICONIQ Growth, has joined the board of directors at DexCare.
“Accessing quality care is a two-sided problem, and DexCare has built a solution that addresses both sides of this equation,” Xie said in a statement.
“On the front-end, DexCare’s platform makes finding care as easy as ecommerce. On the back-end, it helps health systems optimize and unlock capacity, which is ultimately better for patient care and more sustainable for health systems.”
"Caroline has a remarkable track record of investing in sector-creating, transformative companies. She brings a wealth of market knowledge, sees emerging trends, and knows how to successfully scale emerging-growth companies. She will be instrumental in guiding our long-term growth strategy," said Streat.
Spun out of Providence Health in March 2021, DexCare provides a Platform-as-a-Service for health systems that works across all care settings and modalities, including on-demand virtual visits, scheduled in person visits, urgent and retail care, primary care, and even some specialties.
The company offers demand generation technologies, which attract and curate audiences to health systems’ digital front doors by making their delivering digital care more discoverable by patients online; it also offers intelligent navigation technology, which leverages the company's understanding of patient needs and wants, which is combined with provider information and health system objectives in order to ensure consumers are presented with the safest, and best, care options.
Finally, DexCare offers optimization technologies, which automatically allocate health system resources when and where they can be most productively employed. The company does this by matching them to consumers when and where they need care.
DexCare is currently used by health systems across the U.S., including Kaiser Permanente, Providence, Houston Methodist, Community Health Network, Froedtert Health, and others. It now reaches more than 57 million patients across all 50 states. Since spinning-off, DexCare has boosting new-patient bookings 30%, diverting 350,000 emergency-room hours and increasing downstream revenue eightfold.
The company says it will use the new funding to advance its platform, which extends limited health-system capacity to serve patients faster and to precisely manage the supply and demand of digital-care access.
"With this funding, we have the flexibility to think bigger about how we scale the platform, grow our markets, and serve healthcare systems," said Streat.
As for where the company goes from here, "As the adage goes: The best way to forecast the future is to create it. And that’s what DexCare is busy doing," he explained.
"We’re changing how health systems think about their consumers, how to merchandize care across the digital ecosystem, and put in place the controls needed to manage their precious resources. We envision a world where all consumers enjoy exceptional access to the best expertise to prevent, treat, and cure illness. We’re resolute in the pursuit of our vision, and the next five years will be instrumental."
Updated with comment from Derek Streat, CEO of DexCare
(Image source: dexcare.com)
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Joined Vator onDerek Streat is Founder, CEO and Chairman of DexCare. He is an accomplished healthcare technology entrepreneur and executive, having co-founded and/or been at the earliest stages of six venture-backed companies.