Kareo Secures $15 Million in Mezzanine Debt from Escalate Capital Partners

Latest investment brings total capital raised in 2014 to $47MM, new capital will be used to further expand Kareo’s cloud-based solutions for independent physicians

Irvine, CAOctober 24, 2014 Kareo, the leading provider of cloud-based medical office software for small medical practices, today announced that it has received $15 million in mezzanine debt from Escalate Capital Partners, an institutionally backed mezzanine fund that invests in high growth companies in the technology, healthcare and Software-as-a-Service (SaaS) industries. In 2014, Kareo has secured a total of $47 million in funding, reinforcing the company’s unprecedented growth and further enhancing Kareo’s role as the independent physician’s trusted partner.

Kareo enables independent physicians and their staff to streamline patient engagement, clinical documentation, billing, and other critical administrative processes in order to focus on what matters most—providing quality patient care. The $15 million in new growth capital will be used to further expand Kareo’s reach and deepen its solution set to meet inevitable demand due to patient-driven shifts in the industry, while accelerating the development and innovation of the company’s cloud-based technology.

“The shift toward consumer-driven care is continuing to gain momentum,” says Dan Rodrigues, founder and CEO of Kareo, “and we believe that independent practices are uniquely positioned to benefit from this trend and provide the most appropriate and highest quality care to patients. We are delighted to have the backing and confidence of Escalate as we further enhance our products to better support small practices.”

Kareo’s mission has been affirmed by its significant growth. The company has been consistently recognized as one of the fastest growing private companies in the U.S., realizing a 552 percent increase in revenue over the past three years. The company now serves more than 25,000 healthcare providers with its award-winning EHR, practice management and billing services platform, and is adding more than 500 provider customers per month.

“Kareo’s unique business model and market-leading solutions are changing the game in healthcare IT,” says Ross Cockrell, managing director at Escalate Capital Partners. “There is considerable market opportunity for Kareo as independent physicians provide the majority of patient care in the United States. And with increasing focus on fee-for-quality reimbursement models, this trend will likely continue. Kareo is well poised to sustain its growth record and we are excited to be a part of its continued success.”

The latest financing brings Kareo’s total capital raised to $90 million. New investor Escalate Capital Partners joins Kareo’s group of top-tier institutional investors which also include OpenView Venture Partners, Greenspring Associates, Stripes Group, Silicon Valley Bank and Western Technology Investments.

About Kareo

Kareo is the only cloud-based medical office software and services platform purpose-built for small practices. At Kareo, we believe that, with the right tools and support, small practices can do big things. We offer an integrated solution of products and services designed to help physicians get paid faster, run their business smarter, and provide better care. Our practice management softwarebilling services, and free, award-winning fully certified EHR help more than 25,000 medical providers more efficiently manage the business and clinical sides of their practice. Kareo has received extensive industry recognition, including the Deloitte Technology Fast 500, Inc. 500/5000, Forbes Top 100 Most Promising Companies, and Black Book #1 Integrated EHR, Practice Management and Billing Vendor. Headquartered in Irvine, California, the Kareo mission is to help providers spend their time focused on patients, not paperwork. For more information, visit www.kareo.com.

About Escalate Capital Partners

Escalate Capital Partners is an institutionally backed mezzanine fund that invests in high growth companies and is an ideal partner at the critical growth phase in a company’s lifecycle, offering patient capital tailored to each company’s unique needs. Escalate Capital has built a track record as a valued and committed partner through periods of robust growth and economic uncertainty. The Escalate Capital investment team has a combined 75+ years of experience and has invested more than $2 billion in over 500 companies.

Posted in EHR, EHR Investment, EHR Vendors, Electronic Health Record, Electronic Medical Record, EMR, EMR Vendors, Healthcare IT, Healthcare IT Funding, Healthcare IT Investment | Tagged , , , , , , , , | Comments Off

Just Epic Salary Info Survey

One of our most popular posts was one about Epic Salaries. Although, that was focused on what Epic payed its employees. Many people are interested in what Epic experts are getting paid as full time employees at hospitals or as Epic EHR consultants.

In an effort to better understand what Epic experts can expect to get paid, someone has put together a survey they call JESI (Just Epic Salary Information). I love transparency and so I want to support their efforts to gather as many Epic Salaries as possible. So, if you are an Epic expert, help us out and fill out the quick Epic Salary Information form. Don’t worry. They don’t ask for your contact information, organization name, or anything else.

The other reason I want to support this effort is that all of the aggregate information will be published for free on JustEpicSalary.info. I’ll be interested to see the results of the survey.

Do you know of any other sources of Epic salary information? How do you decide what you pay your Epic experts?

This also reminds me of a recent discussion I had. This hospital CIO told me that they were talking with their doctor about their Epic implementation. The doctor was complaining about how much time they were spending to get Epic working the right way. The doctor asked why some Epic consultants couldn’t just do this for him. Turns out, the doctor was the cheap resource. Having an Epic consultant do it, would have been much more expensive. Doctors don’t hear that very often.

Posted in Hospital EHR, Hospital EHR Company, Hospital EHR Vendor, Hospital Electronic Health Record, Hospital Electronic Medical Record, Hospital EMR, Hospital EMR Company, Hospital Healthcare IT | Tagged , , , | Comments Off

M*Modal Announces New Chief Executive Officer

Franklin, Tenn. – October 23, 2014  – M*Modal, a leading provider of clinical documentation and Speech Understanding™ solutions, today announced that healthcare IT industry veteran Scott MacKenzie has joined the company as Chief Executive Officer and a member of M*Modal’s Board of Directors.

“Scott brings more than 25 years of experience in healthcare and information technology, with a successful track record in driving operational execution and helping companies leverage their core assets to create growth and value,” said Jeffrey Goldberg, Chair of the Board at M*Modal. “M*Modal continues to be at the forefront of clinical documentation and technology-enabled services, and we are confident that Scott’s leadership will help strengthen the company for long-term success.”

Mr. MacKenzie joins M*Modal having served as CEO of Passport Health Communications, which was purchased by Experian in 2013. Since the acquisition, he has been President of Experian Health, a leading healthcare revenue cycle solutions provider. Prior to Passport, Mr. MacKenzie was part of McKesson Corporation as President of RelayHealth Pharmacy Solutions. He also held executive positions at Cerner Corporation, where he ran its Providing Care business unit focused on physician, nurse, pharmacist and consumer electronic health record (EHR) software.

“M*Modal has a unique combination of talent, assets and relationships that creates tremendous potential in how it can impact healthcare and serve customers,” said Mr. MacKenzie. “I am joining M*Modal at a time when the company is positioned for change and the market is open to solutions that improve productivity and leverage technology investments. I look forward to working with M*Modal’s talented team to deliver on its vision to be the industry’s best clinical documentation provider.”

M*Modal is focused on increasing the productivity of healthcare providers using a combination of technology and services to improve clinical documentation and allow physicians to focus on their patients. M*Modal augments EHR investments by improving the accuracy and expediency of input and the fluency of collaborative information exchange.

About M*Modal

M*Modal is a leading healthcare technology provider of advanced clinical documentation solutions, enabling hospitals and physicians to enrich the content of patient electronic health records (EHR) for improved healthcare and comprehensive billing integrity. As one of the largest clinical transcription service providers in the U.S., with a global network of medical editors, M*Modal also provides advanced cloud-based Speech Understanding™ technology and data analytics that enable physicians and clinicians to include the context of their patient narratives into electronic health records in a single step, further enhancing their productivity and the cost-saving efficiency and quality of patient care at the point of care. For more information, please visit www.mmodal.com, Twitter, Facebook and YouTube.

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CHIME Launches Two New Organizations to Serve Professional Needs of Chief Technology Officers and Chief Application Officers in Healthcare

ANN ARBOR, MI, October 23, 2014The College of Healthcare Information Management Executives (CHIME) announced today the launch of two new organizations to serve the education and professional development needs of healthcare executives in senior technology and application roles.

The Association for Executives in Healthcare Information Technology (AEHIT) and the Association for Executives in Healthcare Information Applications (AEHIA) are the first professional organizations representing chief technology officers (CTOs) and chief application officers (CAOs) in the healthcare setting. Formed to address an unmet need in the industry, AEHIT and AEHIA will provide educational resources on important healthcare technology and IT application-focused issues, as well as an environment where CTOs and CAOs can communicate with, inform, and educate one another. These follow the recent creation and launch of AEHIS, the Association for Executives in Healthcare Information Security to serve healthcare CSOs.

“With the establishment of these two new organizations, CHIME has taken an active role in providing these healthcare leaders an opportunity to pool their collective knowledge and advance their skills,” said CHIME Board Chair Randy McCleese, FCHIME, LCHIME, CHCIO. “CIOs are increasingly relying on leaders like CTOs, CAOs and CSOs in order to deliver and manage a complex technology environment, so collaboration among these highly-accomplished individuals is essential to furthering industry solutions and opportunities.”

“Both of these new organizations will help strengthen the CTO and CAO roles in order to meet the challenges created by the rapid and unprecedented changes in healthcare technology,” said CHIME Executive Vice President of Membership and Professional Development George W. McCulloch, FCHIME, CHCIO. “Our goal is to provide the education and collaboration necessary for these leaders so they can solve issues, share best-practices, and form meaningful, supportive relationships with their peers.”

AEHIT and AEHIA will operate as separate membership associations under the umbrella of CHIME, a professional organization dedicated to serving healthcare chief information officers (CIOs) and other senior IT leaders. AEHIT and AEHIA members will benefit from CHIME’s twenty-two year history in delivering valuable, high-quality leadership education and networking opportunities.

“CHIME is committed to not only supporting healthcare CIOs, but also those on the CIO’s executive team,” said CHIME President and CEO Russell P. Branzell, FCHIME, CHCIO. “The CHIME Board recognized our industry’s need for the professional development and peer-to-peer needs of CTOs and CAOs, where professional development educational resources for these individuals were lacking.”

Interested CTOs and CAOs that apply and are accepted before December 31, 2014 will be recognized as founding members and will receive a one-year complimentary membership. For more information, please visit www.aehit.org and www.aehia.org.

About CHIME
The College of Healthcare Information Management Executives (CHIME) is an executive organization dedicated to serving chief information officers and other senior healthcare IT leaders. With more than 1,400 CIO members and over 140 healthcare IT vendors and professional services firms, CHIME provides a highly interactive, trusted environment enabling senior professional and industry leaders to collaborate; exchange best practices; address professional development needs; and advocate the effective use of information management to improve the health and healthcare in the communities they serve. For more information, please visit www.cio-chime.org.

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Online Diagnosis and Treatment App – Zipnosis

I was recently introduced to an online diagnosis and treatment app called Zipnosis. The video embedded below does a pretty good job describing how the app works and what they’re trying to do with the company.

In some ways, this technology reminds me of Vinod Khosla’s famous quote that “technology will replace 80 percent of doctors.” In the case of Zipnosis, it seems that the technology isn’t quite replacing the doctor, but it’s one step closer to being able to do so. They told me that’s not their vision, but you can see how this could be the start of a very interesting algorithm that could treat patients.

I’m sure many people reading this are wondering how a doctor can treat someone who they’ve never talked to, met, touched, etc. In fact, it seems that with Zipnosis the doctors is treating and prescribing for a patient who has just filled out what amounts to an online form (in the form of an online app). Lest you get too concerned, here’s the list of conditions they treat:
Zipnosis Online Diagnosis Treatment Options

I’ll be interested to see how this list expands and contracts. No doubt, there are a lot of situations where an online form is probably more than enough to treat the patient. Add in pictures and you have a bunch more things you can treat. Add in other external devices and you can treat even more. I’ll be interested to watch Zipnosis and see how they expand and how the market responds to what they’re offering.

Posted in Health Care, Healthcare IT, mHealth, Mobile Health Care, Smart Phones, Telemedicine | Tagged , , , | Comments Off

The Sullivan Institute for Healthcare Innovation Announces Release of Guiding Principles for Patient Experience-Centered Care

The Sullivan Institute for Healthcare Innovation’s Patient Experience Council expandsInstitute of Medicine’s definition for patient-centered care with six guiding principles

RESTON, Va. — October 22, 2014 The  Louis W. Sullivan Institute for Healthcare Innovation, which is dedicated to distribute health information technology innovation to transform quality and efficiency of healthcare delivery worldwide announced the development of six key guiding principles of patient-centered card in which patients expect when receiving healthcare. These are an expansion of the Institute of Medicine’s definition for patient-centered care: “providing care that is respectful of and responsive to individual patient preferences, needs, and values and ensuring that patient values guide all clinical decisions.”

The full document of guiding principles is available online, which details the six main principles:

  1. Clearly Defined Roles
  2. Assessment of Patient and Clinical Care Team Competencies
  3. Patient-Centered Decision-Making
  4. Information Access and Exchange
  5. Information Accuracy
  6. Privacy and Security

“I am incredibly proud of the work our Patient Experience Council is doing to make strides in reshaping the way we look at healthcare from the patient’s perspective and experience of their own care,” said Kym Martin, MBA, CNC, CFT, Co-Chair of The Sullivan Institute’s Patient Experience Council. “As healthcare stakeholders explore strategies to deliver more patient-centric care, products and services, we see these Guiding Principles serving as the next step to ensuring that the patient engagement strategies being considered result inpatient-experience centered outcomes.”

The Patient Experience Council represents a collective body of ePatients and eAdvocates committed to transforming healthcare from the patient perspective. They are charged with the implementation of the Patient Engagement recommendations set forth in the 2013 WEDI Report, a roadmap for the future of healthcare information exchange that was launched December of 2013.

“The 2013 WEDI Report envisioned the future of healthcare information exchange with the patient in the middle. I believe that the principles being released today by our Patient Experience Council will help provide a framework for how organizations should orient their efforts in order to prepare for the future landscape of healthcare,” said Devin Jopp, Ed.D, President and CEO, WEDI.

About the Sullivan Institute

The Louis W. Sullivan Institute for Healthcare Innovation is a 501(c)(3) non-profit organization, named in honor of The Honorable Louis W. Sullivan, M.D.  Its mission is to bring healthcare leaders together to share knowledge needed to transform the quality and efficiency of healthcare delivery through education, cooperation, communication and innovation. To learn more, visit www.sullivaninstitute.org.

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Insightful Healthcare Factoids from Health Catalyst

Who doesn’t like a good set of healthcare IT stats and facts? Obviously, you have to be careful looking at the context of the statistic and how it was collected. However, when done right, you can learn a lot from what Health Catalyst is calling a Healthcare Factoid. They shared a bunch of Factoids during their Healthcare Analytics Summit and then packaged them into a nice slide presentation below.

Which healthcare factoids stand out for you?

Posted in Healthcare Analytics, Healthcare Big Data, Hospital Electronic Health Record, Hospital Electronic Medical Record, Hospital EMR, Hospital Healthcare IT | Tagged , , , | Comments Off

Podcast: Scot Silverstein talks health IT safety risks

In a sidebar to the September cover story I did for Healthcare IT News, I reviewed some of the work of Scot Silverstein, M.D., who has long been chronicling problems with EHRs and other health IT systems. Unfortunately, he wasn’t available for an interview in time for that report, but he was last week, so I got him for a new podcast.

Silverstein, a professor of health informatics at Drexel University in Philadelphia, considers EHRs to be experimental and, sometimes, less safe than paper records and would like to see health IT subjected to the same kind of quality controls as aerospace software or medical devices. “Suboptimal system design could lead even careful users to make mistakes,” Silverstein said in this interview.

During this podcast, we refer to a couple of pages that I promise links to, so here they are. Silverstein writes regularly for the Health Care Renewal blog, a site founded by Roy Poses, M.D., a Brown University internist who runs the Foundation for Integrity and Responsibility in Medicine. His definitions of good health IT and bad health IT appear on his Drexel Web page.

Podcast details: Scot Silverstein, M.D., on health IT safety risks. MP3, mono, 128 kbps, 33.8 MB. running time 36:59.

1:10 How this interest came about
3:05 His blogging
3:45 His 11 points demonstrating why he believes the FDA should be concerned about health IT risks
5:00 IOM, FDA and ECRI Institute statements on health IT safety
5:50 Comparing EHRs to medical devices and pharmaceuticals
8:35 Lack of safety testing in health IT
9:25 Issues with EHR certification
10:00 Safety validation of software
10:35 EHR’s role in Texas Health Presbyterian Hospital’s initial discharge of Ebola patient
11:50 EHR failure causing medical harm to a close relative
13:10 Poor design vs. poor implementation
14:35 Who should regulate?
15:55 Billions already spent on EHRs
16:45 Threat of litigation
17:40 “Postmarket surveillance” of “medical meta-devices”
18:50 EHRs now more like “command and control” systems
19:30 Movement to slow down Meaningful Use
20:17 Safety issues with interoperability
21:40 Importance of usability
22:30 His role at Drexel
24:18 “Critical thinking always, or your patient’s dead”
25:05 Lack of health/medical experience among “disruptors”
29:30 Training informatics professionals and leaders
31:15 Concept vs. reality of “experimental” technology
32:50 Advice for evaluating health IT
33:55 Guardians of the status quo
35:10 Health IT “bubble”
36:10 Good health IT vs. bad health IT

 

Posted in ARRA, blogging, EMR/EHR, health it, Health IT workforce, Healthcare IT, informatics, interoperability, jurisprudence, Meaningful Use, medical errors, medical informatics, patient safety, physicians, podcast, quality, regulations | Tagged , , , , , , , , , , , , , , , | Comments Off

How Do You Change the HIPAA Culture of Your Hospital?

Over on EMR and HIPAA, I wrote an article about the “Just Enough” culture of HIPAA compliance. I’m sure that many of you reading this post will be very familiar with this culture. Unfortunately, it’s rampant in so many hospitals across the nation. Even when a few people in the organization are hyper focused on doing more about HIPAA compliance, they’re often stifled by others who want to do just enough.

In response to this post, Christopher Gebhardt, offered these suggestions on when a hospital’s culture has a “funny” way of changing:
– Through the genuine interest of senior executives leading the charge.
– After being slapped with a violation.
– When OCR shows up at your door. The latter defeats the “it can’t happen here” mentality.
– When OCR takes action, repeatedly, for known violations against your competitors.

I think you could define Christopher’s description as a reactionary approach to HIPAA compliance. I think it’s fair to say that along with being a “just enough” culture of HIPAA compliance, healthcare is also very reactionary. There are some notable exceptions to this, but HIPAA and security compliance are very reactionary in most hospitals.

Culture is a hard thing to change at any organization. However, I think we’re entering a new era where a culture of security and compliance is going to be very important to every healthcare organization. With social media, there’s no where to hide any more. An investment in the right hospital security and privacy culture will likely pay off greatly in the long term.

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The State of Hand Hygiene Compliance Infographic

DebMed recently announced the results of the Hospital Hand Hygiene report. They also put out this infographic which summarizes some of the findings:
The State of Hand Hygiene Compliance Infographic

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