RICHMOND, Va.--(BUSINESS WIRE)--MedVirginia, Inc., doing business as Clareto and a pioneer in health information exchange, has announced the closing of a Series A financing led by Health Catalyst Capital Management, LLC (“HCC”).
The combination digital health and insurtech company enables life insurers to participate in standards-based exchange of electronic health data – subject to patient consent via HIPAA-compliant authorizations – with the goal of transforming the outdated underwriting process. This funding round will enable Clareto to accelerate growth of its proprietary health data network to a national scale, comprising public and private health information exchanges (HIEs), provider organizations, technology vendors, and other sources.
“Today, nearly half of American households lack adequate life insurance. And while there are more opportunities than ever before to shop for coverage online and apply electronically, consumers may still be confronted with an arduous underwriting process or algorithms that evaluate risk based on credit scores, geolocation data, and other factors that are potentially discriminatory,” said Dave Dorans, CEO of Clareto. “Electronic health data, however, provides an attractive alternative to tried and true underwriting requirements, such as requesting traditional medical records via fax and mail, and performing intrusive medical exams and laboratory tests. In the long-term, we expect this data to revolutionize underwriting as we know it, simplifying the path for consumers to access the financial protection their families need via the experience and efficiency they expect from the digital economy.”
Clareto also operates MedVirginia, a federated HIE offering query-based document exchange and results routing services to participating healthcare providers throughout Virginia and beyond. In 2009, MedVirginia became the first HIE to connect with eHealth Exchange – the nation’s largest health information network covering four federal agencies, 75% of hospitals, 59 state and regional HIEs, and thousands of physician practices, pharmacies, and dialysis centers – and the Social Security Administration’s (“SSA”) Health IT program for expediting disability determinations.
HCC invests in multiple-stages of high-growth healthcare IT and tech-enabled services companies.
“Clareto is reshaping the life insurance process by bringing much needed innovation to one of the most regulated and stationary industries in existence,” said Charles Boorady, Founding Managing Director of HCC. “Using data and technology to turn a frustrating process into a seamless user experience, Clareto is breaking down the barriers for obtaining financial protection. We’re proud to be part of the team that is working to improve the lives of millions of American families and shaking up a massive industry.”
Clareto received early investment backing from NRV, a Virginia-based venture capital firm. Bob Mooney, Managing Director at NRV and Clareto board member noted, “HCC’s investment in Clareto confirms the continued convergence of healthcare and insurance technologies, specifically the role that data science plays in both sectors. We are delighted to have HCC join the growing list of healthcare venture firms finding investment opportunities in Richmond’s ecosystem and look forward to partnering with them going forward.”
MedVirginia, Inc., doing business as Clareto, has been a long-time innovator in the field of health information exchange. Today, the combination digital health and insurtech company is translating its unique history and experience in healthcare interoperability to commercialize novel use cases and pursue emerging market opportunities, with an initial focus on modernizing life insurance underwriting. Based in Richmond, Virginia, Clareto is led by a multi-disciplinary management team with deep expertise in the healthcare and insurance sectors. For more information about Clareto, please visit http://clareto.com/.
About Health Catalyst Capital
Health Catalyst Capital (“HCC”) is an independent private equity firm that invests primarily in venture to growth stage healthcare information technology and technology-enabled services businesses including artificial intelligence, genomic data analytics and informatics. HCC was formed by a team of experienced healthcare investors and operators seeking profitable investment opportunities, while at the same time seeking to improve the human condition and promote value-based care. Health Catalyst Capital, L.P. invested in Clareto as part of its systematic review of companies developing technologies related to Interoperability.
HCC seeks investment opportunities primarily in the investment themes related to Genomics / Personalized Medicine, Patient Navigation, Referral Management, Value-based Care, Interoperability and Aging in Place.