Recondo Technology Closes $16 million Funding Round to Support Exponential Growth to Power the Healthcare Revenue Cycle
GREENWOOD VILLAGE, Colo., November 3, 2016-- Recondo Technology, the market leader in cloud-based single-platform revenue cycle management solutions, announced today that it closed an additional $16 million in debt and capital funding to support and accelerate the company's future growth curve. Lemhi Ventures led the round, with Bridge Capital serving as the debt partner.
The capital will be used to fund significant continued product development investments, particularly in areas of API-enabled revenue cycle content, expanded claims statusing, and authorization automation—all solutions designed to measurably improve financial outcomes.
Recondo, which is experiencing a 50 percent year-over-year increase in bookings, attributes its recent growth largely to the success of its industry-leading Claims Status Plus (CSP) solution, used by more providers than all competing products combined. The company anticipates its growth in the fourth quarter will remain at the same or higher level.
"We are thrilled that Lemhi Ventures chose to continue their longstanding relationship with us to support our effort to advance major innovations for US healthcare," said Jay Deady, CEO of Recondo. "I am extremely proud of our team's execution in driving growth in excess of 50 percent year-over-year, while simultaneously achieving corporate profitability for the first time in the company's history. Recondo is poised to leverage this investment to further execute on our aggressive growth strategy."
In addition to the market success of its Claims Status Plus solution, Recondo is experiencing significant growth with its Auth-DP suite of automated authorization tools. Given the pace at which payers introduce and revise authorization requirements and rules, it is vital for healthcare providers to align with a solution provider that maintains and monitors policies and rules as a service, to eliminate the manual burden and expense of authorization content management. Recondo has grown its authorization rules library content to over 700,000 rules, which are curated and expanded every two weeks.
Additionally, the significant increase in covered workers choosing high deductible and health savings account plans (HDHP/HAS), up from 4 percent in 2006 to 24 percent in 2015 and expanding monthly, has medical providers struggling to provide consumers with accurate pre-treatment estimates to help with financial planning. Recondo's price transparency solutions—SurePay Health and its recently introduced consumer-facing solution, MySurePayHealth—enable medical provider staff, or consumers on a direct basis, to receive fast, accurate estimates for financial planning and pre-service collection. Recondo currently produces over 9 million estimates annually, representing in excess of $3 billion of consumer out-of-pocket spend obligation.
All Recondo solutions are powered by Recondo's patented[i] Reconbot® technology, which takes the revenue cycle to the next level by automatically querying payer websites and then retrieving, normalizing and presenting actionable, workflow-contextual information critical to the patient access and claims follow-up process.
"We are especially excited about the growth and new product innovation that Jay and the Recondo team have driven," said Jodi Hubler, Lemhi's Managing Director and Recondo's Board Chairperson. "Lemhi was purpose-built to incubate and fund disruptive healthcare service companies like Recondo through their life cycle. I believe we'll continue to see strong market demand for Recondo's solutions and a bright future for the company."
Recondo is attending and available for meetings at two upcoming conferences:
•HFMA Region 4 Mid-Atlantic in Asheville, NC - Nov. 13-15
•HIMSS Revenue Cycle Summit in Boston, MA - Dec. 6-7.
About Recondo Technology
Recondo's cloud-based solutions deliver financial clarity to all participants within the healthcare revenue cycle. Named the No. 1 hottest company in healthcare by Modern Healthcare in 2013, Recondo empowers more than 850 hospitals with solutions that connect providers, payers and patients to ensure proper payments across the care continuum. The company's software and expertise streamline operations and allow providers to be paid more, faster and at a cheaper cost. Recondo brings efficiencies and cost savings to patient access through to payment processing—a continuum today where inaccuracy and inefficiencies currently cost U.S. healthcare a staggering $480 billion per year. Learn more at www.recondotech.com.
About Lemhi Ventures
Lemhi Ventures is a health care services venture capital firm headquartered in Wayzata, Minnesota. With over $330M in assets under management, Lemhi leverages a point of view investing approach and the operating background of its team to invest in and build innovative and disruptive companies. lemhiventures.com.
[i] U.S. Patent No. 8,943,565 (issued January 25, 2015)
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