PE investor Advent acquires a significant stake in Iodine Software and increases its valuation to $ 1 billion

0

Private equity firm Advent International bought a significant stake in Iodine Software and valued the company at more than $ 1 billion.

A major player in artificial intelligence in healthcare, Iodine is a major clinical AI engine used by more than 800 healthcare systems and 80,000 doctors. Its clinical AI engine improves clinical documentation to help healthcare systems generate more revenue while enabling providers to improve clinical care.

“This strategic growth investment is a signal and an endorsement of the work we are doing in using a specialized version of AI to solve mid-cycle problems,” said William Chan, CEO and co-founder of Iodine, to Fierce Healthcare.

Further financial details of the transaction announced on Wednesday were not disclosed.

Bain Capital Ventures and Silversmith Capital Partners, who invested in the company in 2018, remain shareholders.

The investment will give Iodine access to capital for expansion and growth strategies so the company can innovate faster, Chan said.

RELATED: Iodine Software Acquires Competitor ChartWise Medical Systems to Expand Its Reach to More Hospitals

Founded in 2010, Iodine has grown rapidly over the past decade by using its machine learning machine to resolve mid-cycle lost revenue – an issue that health systems billions of euros due to resource-intensive, highly manual clinical documentation workflows in lost revenue costs.

Performance benchmarking company KLAS Research recently recognized Iodine as the Top Performing Clinical Documentation Improvement Company.

While the company’s machine learning approach initially focused on solving things like improving clinical documentation, Iodine recently selected other technology companies to grow its AI platform and expand its market reach.

In May, Iodine bought Artifact Health to bring its AI technology directly into the hands of more than 80,000 vendors across the country. Artifact Health developed the first mobile app for physician inquiries so that providers can respond quickly and compliantly to clinical documentation improvements and coding requests from their smartphone or computer.

In June, the Austin, Texas-based company bought competitor ChartWise Medical Systems. The acquisition extends iodine clinical predictions to more than 800 hospitals and healthcare systems, according to the company’s management.

The private equity deal will strengthen Iodine’s growth and give the company “firepower” to expand its technology to other strategic areas of healthcare, Chan said.

“Hospitals and health systems really need to improve with relevant and applicable technology to drive improvements in the hospital system. AI is really leading the way in a lot of these changes, ”he said. “Advent sees what we do and how the AI ​​platform we have developed can be easily transferred to other areas within the hospital. This investment provides the opportunity to transfer our platform and the tools we have developed to other areas, for example Example in rejection management. “

Iodine Software is experiencing rapid growth in hospitals and healthcare systems, Carmine Petrone, managing director of Advent’s healthcare team, said in a statement.

“Jodine’s world-class AI innovation machine and strong customer focus underpin the company’s ability to deliver a world-class product with very differentiated value,” said Petrone.

Over the past 30 years, Advent has invested or tied up more than $ 11 billion in 88 technology companies and $ 10 billion in 51 healthcare companies, including healthcare technology, software, and provider companies.

The healthcare enterprise AI space is a must-have as Microsoft acquired $ 19.7 billion worth of voice recognition and healthcare AI company Nuance. According to CB Insights, investment in AI startups boomed in 2020 and skyrocketed in the first quarter of 2021.

Globally, healthcare AI companies raised a record $ 2.5 billion in 111 deals in the first quarter of 2021.

RELATED: Iodine Software Acquires Artifact Health to Expand Its AI Technology to Thousands of Physicians

Chan points out that Iodine’s AI and machine learning technology is very different from the way tech giants have approached AI in healthcare, such as IBM with Watson Health.

“Our view is that AI is not a one-size-fits-all approach. We created a solution that was specifically designed to address a specific problem, ”he said.

Chan also noted that many healthcare processes, like rejection of claims, are currently being handled by clinicians, a resource-intensive, very manual process, especially at a time when hospitals are facing labor shortages.

“The use of AI will continue to grow, and as AI and machine learning can add to what these people are doing to do it better and faster, hospitals and healthcare systems will adopt this technology,” he said.

Jod is helping drive that change, said Yumin Choi, a partner at Bain Capital Ventures, one of Jod’s previous investors.

“We saw the enormous potential that his AI-based software would offer hospitals in the digital age. With this strategic investment, Iodine has the opportunity to reach more hospital staff, resulting in better patient care in the US, ”said Choi.


Source link

Share.

Comments are closed.