Denver-based NextHealth Technologies is starting the month off with a bang following this morning’s announcement of a $17 million Series B funding.
The round was led by TripleTree Capital Partners with participation from Blue Cross of Idaho. Existing investor Norwest Venture Partners, which led the company’s Series A in 2016, also participated.
NextHealth helps health insurance providers lower costs, reduce risks and optimize programs by analyzing consumer behavior, delivering actionable insights and empowering patients to make better healthcare decisions. Essentially, its analytics platform helps insurance providers determine what works and for whom so they can better tailor programs to their customers’ needs, delivering better ROI for both providers and their members.
We intend to not only stay at the forefront but to add new capabilities to make it even easier for our customers to reduce costs and improve outcomes for their members.”
The funding will enable NextHealth to accelerate growth and product development in the year ahead.
“With the annual healthcare big data analytics spend projected to surpass $22 billion by 2023, healthcare costs continuing to rise and competitive pressures increasing, it has never been more important for health plans to know how to transform their clinical investments into proven business value,” said Eric Grossman, CEO of NextHealth, in a statement. “NextHealth is thrilled to have this caliber of investors with such strong ties in the healthcare industry to help us expand our innovative solutions in the marketplace.”
To support this market expansion, NextHealth plans to use the funds to grow its team substantially in the coming months, focusing predominantly on roles in analytics, product development, sales, marketing and client services.
The company’s partnership with TT Capital Partners is also significant. Dedicated exclusively to emerging healthcare technology and services companies, TTPC offers decades of industry expertise and access to a robust network of healthcare leaders. In addition to its financial support, TTCP will also help NextHealth drive product innovation and develop long-term strategies for its growth and success.
“In 2019, expect to see some very exciting new additions to our platform,” said SVP of Marketing and Communications Melissa O'Connor. “Our technology is already at the forefront of helping healthcare organizations target their most impactable populations, measure the effects of the clinical and consumer initiatives, and optimize the most beneficial effects using AI and machine learning.
“We intend to not only stay at the forefront but to add new capabilities to make it even easier for our customers to reduce costs and improve outcomes for their members. We are excited to add more team members who get inspired by doing some cutting-edge work, particularly for healthcare.”
The funding marks the start of an exciting new chapter for the company. But for now, the NextHealth team is basking in the glory of its hard-earned funding by popping some celebratory champagne bottles, noshing on cupcakes and enjoying a well-deserved day off.
