Health Catalyst Raises $41 Million to Enable $50 Million Product Development Investment, Capping Year of Wins Including New Clients Kaiser Permanente and Partners HealthCare
SALT LAKE CITY, Utah, January 28, 2014-- Health Catalyst, the leader in healthcare data warehousing and analytics, announced today that it closed $41 million in funding from existing investors Sequoia Capital, Norwest Venture Partners, Kaiser Permanente Ventures, Sorenson Capital, CHV Capital (an Indiana University Health Company) and Partners HealthCare.
The investment enables Health Catalyst to further build out its healthcare analytics platform and assist its clients in systematically and permanently improving efficiency and effectiveness in care delivery. The company plans to invest $50 million in product development over the next 24 months, including production of the next 200 advanced content-driven clinical applications on its roadmap.
"We are thrilled that our existing investors chose to continue their strategic relationships with us, leading the way to major innovations for US healthcare," said Health Catalyst CEO Dan Burton. "As more healthcare organizations are coming to understand, data warehousing and analytics are foundational to their success under new payment and risk models. In 2013 we increased the number of completed platform and application products to 100, as well as increasing our bookings by a factor of five, year over year. We have also been pleased that our operations have scaled to be on track to produce positive cash flows in 2014, outside of our significant product development investments. This additional capital will enable Health Catalyst to develop the applications necessary to offer every health system in the US a roadmap to systematically reduce waste and improve care delivery, across every major clinical and workflow area."
2013 List of New Clients Includes Healthcare Luminaries
In 2013, a number of the nation's leading health systems adopted the Health Catalyst technology platform to improve quality, eliminate waste and lower costs. The company's clients now operate over 135 hospitals and 1,700 clinics that account for over $130 billion in care delivered annually.
New Health Catalyst clients in 2013 included:
•Crystal Run Healthcare, one of the most innovative multi-specialty group practices in America, with more than 300 physicians in over 40 medical specialties across the mid-Hudson Valley and lower Catskill regions of New York.
•Kaiser Permanente, the nation's largest healthcare delivery system, operating 38 hospitals and employing more than 17,000 physicians serving 9.1 million members in eight states and the District of Columbia.
•Memorial Hospital at Gulfport, an award-winning 445-bed not-for-profit health system that is ranked the best hospital in Mississippi by US News & World Report.
•NorthBay Healthcare, a 182-bed nonprofit health system in the San Francisco Bay Area.
•Partners HealthCare, an integrated healthcare system founded by Brigham and Women's Hospital and Massachusetts General Hospital that is one of the nation's leading biomedical research organizations and a principal teaching affiliate of Harvard Medical School.
•Wisconsin Children's Hospital, recognized as one of the leading pediatric health care centers in the United States, ranked No. 4 in the nation by Parents magazine and ranked in nine specialty areas by U.S. News & World Report.
Health Catalyst also completed major contract extensions in 2013 with Indiana University Health, North Memorial HealthCare, Providence Health & Services, Stanford Hospital & Clinics, and Texas Children's Hospital.
Industry Recognition from Chilmark, Gartner, Modern Healthcare
In 2013, Health Catalyst earned significant industry recognition for its leadership in data warehousing and healthcare analytics:
•Chilmark Research named Health Catalyst the highest-rated overall solution in the Chilmark 2013 Clinical Analytics for Population Health Market Trends Report. The first-of-its-kind report gave Health Catalyst an overall "A-" rating for its superior performance among peers in the product and services categories, calling the company a "clear standout."
•Gartner named Health Catalyst one of five "Cool Vendors for Healthcare Providers, 2013."
•Modern Healthcare named Health Catalyst one of the "Best Places to Work in Healthcare" based on its annual survey of employees. The company ranked eighth among healthcare suppliers nationally and 20th overall in a field that included the industry's best-known companies.
Additionally, earlier this month the research firm KLAS heralded Health Catalyst's platform as a "newer and more effective way to approach EDW" in the report Healthcare Analytics: Making Sense of the Puzzle Pieces. KLAS gave Health Catalyst the highest performance rating (90) in its category, which also included Deloitte, Explorys, Healthcare Data Works, IBM, Oracle, Microsoft, SAP, and Teradata.
About Health Catalyst
Based in Salt Lake City, Health Catalyst delivers a proven, Late-Binding™ Data Warehouse platform and analytic applications that actually work in today's transforming healthcare environment. Health Catalyst data warehouse platforms aggregate and harness large amounts of data utilized in population health and ACO projects supporting over 30 million unique patients. Health Catalyst platform clients operate over 135 hospitals and 1,700 clinics that account for over $130 billion in care delivered annually. Health Catalyst maintains a current KLAS customer satisfaction score of 90/100, received the highest vendor rating in Chilmark's 2013 Clinical Analytics Market Trends Report, and was selected as a 2013 Gartner Cool Vendor. Health Catalyst was also recognized in 2013 as one of the best places to work by both Modern Healthcare magazine and Utah Business magazine. Health Catalyst's platform and applications are being utilized at leading health systems including Allina Health, Children's Hospital of Wisconsin, Crystal Run Healthcare, Indiana University Health, Kaiser Permanente, Memorial Hospital at Gulfport, MultiCare Health System, North Memorial Health Care, Partners HealthCare, Providence Health & Services, Stanford Hospital & Clinics, and Texas Children's Hospital. Health Catalyst investors include CHV Capital (an Indiana University Health Company), Kaiser Permanente Ventures, Norwest Venture Partners, Partners HealthCare, Sequoia Capital, and Sorenson Capital. Visit www.healthcatalyst.com, and follow us on Twitter, LinkedIn and Facebook.
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