by Rebecca Torrence | Jan 14, 2022 11:25am
DexCare, the digital care operating system that was spun out of Providence Health last March, has raised $50 million in series B funding for its platform that manages health system capacity and demand.
Providence Health’s Digital Innovation Group initially developed the DexCare platform in 2016 to support patient acquisition and navigation. Now, the artificial intelligence-driven platform provides those services to multiple health systems.
Transformation Capital led the series B round, with participation from Kaiser Permanente, Providence Ventures, Mass General Brigham, Define Ventures, Frist Cressey Ventures and SpringRock Ventures.
“Hospitals are moving to hybrid care and need a single solution to attract new patients and to connect them both virtually and in-person with their own caregivers,” said Derek Streat, co-founder and CEO of DexCare, in a statement. “This investment will help us accelerate platform development and go-to-market progress for our growing number of premier health systems such as Kaiser Permanente, Providence, Mass General Brigham, CHS, Houston Methodist and others. Transformation Capital’s digital health focus will help us achieve these goals along with our current line-up of top healthcare-focused partners.”
DexCare’s platform links multiple digital health applications to meet patient needs with real-time demand aggregation and accessible appointment booking across service lines like same-day and urgent care, as well as across care modalities from in-person to virtual care.
The technology offers a solution to the rising demand for consumer-facing health tech in response to COVID-19, which requires interoperable operating systems that can provide personalized and cost-effective care, the company said.
The Seattle-based company raised $21 million in its series A round, bringing its total funding to $71 million in less than a year.
The series B funding will help DexCare accelerate their product and technology development, as well as support their customer experience and recruit new talent, the company said.
“DexCare was essential in digitally transforming our ambulatory care model to better serve the needs of patients and was also a key part of Providence’s digital response to COVID,” said Aaron Martin, executive vice president and chief digital officer at Providence. “We’re excited that the platform incubated by the Digital Innovation Group, and that has added so much value to Providence over several years, is seeing such an enthusiastic reception from other health systems. We’re looking forward to the innovations the DexCare team will deliver to customers as a result of this latest fundraise.”
Providence’s Digital Innovation Group supports the development of technologies that respond to healthcare problems, occasionally building the product themselves.
DexCare is the third health-related business to have spun out from the group, following Xealth and Circle, both developed internally at Providence.
Digital prescribing platform Xealth launched independently in 2017, and women’s health platform Circle was acquired by Wildflower Health in 2018.
Providence also collaborated with other major health systems last February to launch Truveta, which pools patient data for research and drug development. Tenet Health, CommonSpirit Health, Advent Health and Northwell Health are among the 14 total partners contributing to the startup.