Following Year of Record Growth, Funding Will Accelerate Company-Wide Investments
NEWTON, Mass. – Hospital IQ, the leading provider of predictive hospital operations and communications software, secured $25 million in Series C funding led by Baxter Ventures, the venture investment arm of Baxter International Inc. (NYSE: BAX), and Health Velocity Capital, joining existing investors Pierpoint Capital and Allscripts. The investment comes amid a year of unprecedented company growth as its AI-enabled operations management platform solved operational inefficiencies, many of which were exacerbated by the pandemic, for hundreds of hospitals and health systems.
Hospital IQ will use the funding to accelerate growth across all areas of the company, including product development, sales and marketing, and client services, and to spur further collaboration with its existing Allscripts and Cerner partnerships, as well as support new partnerships. The company also will hire more talent across all business units, and expects to grow the team by 50% by year’s end and by 100% in the next 12 months. This rapid acceleration of growth comes after a record year for the company, during which Hospital IQ’s revenue more than doubled, its customer base grew by 50%, and utilization of the platform increased 14x, a clear indication of the value of Hospital IQ’s solutions.
“We’ve worked hard to develop a solution that arms healthcare workers with the insight and foresight needed to get the most out of limited resources and maximize patient access,” said Rich Krueger, CEO, Hospital IQ. “In this post-COVID era, providers are committed to digital transformation to meet today’s changing demands. Our platform has proven to be unmatched in its depth, adaptability and ability to drive quantifiable operational improvements for our customers and their patients. We’re excited to scale our operations alongside industry demand and enable more health systems to optimize their performance while providing high-quality care as we advance healthcare’s digital age.”
Over the past decade, Hospital IQ has pioneered a movement urging health systems to rethink how operational excellence is achieved, proving that the utilization of predictive analytics, workflows and communications is the combination that enables sustainable improvements in efficiency and access. The company’s operations management platform has become the industry standard among U.S. providers — spurring a new category in health IT focused on capacity operations management, automation, and optimization as more providers recognize that this is the path to effective, smarter healthcare.
“The need to invest in care quality, patient access and cost containment has never been greater,” said Jessica Hameline, Vice President, Digital Transformation at Baxter International. “We are proud to support Hospital IQ’s continued commitment to address this imperative with smart solutions that empower providers and enable health systems to operate optimally, all of which leads to better outcomes for patients.”
“Health Velocity Capital is committed to investing in leading healthcare software and services companies that are working to drive down the cost of healthcare, create a better patient experience and build a more sustainable healthcare system,” said Bruce Crosby, Managing Partner at Health Velocity Capital. “Hospital IQ’s software addresses a hospital’s highest costs – staffing and patient throughput, allowing hospitals to operate more efficiently. Hospital IQ has a very experienced and talented team leading the company, and we look forward to partnering with them to meet the market’s demand for its solutions.”
About Hospital IQ
Hospital IQ provides an operations management software platform that uses artificial intelligence to anticipate and direct actions, enabling health systems to achieve and sustain peak operational performance to improve patient access, clinical outcomes and financial performance. Hospital IQ’s cloud-based software platform combines advanced data analytics, machine learning and simulation technology with an easy-to-use, intuitive user interface to deliver optimized surgical resource alignment, patient flow, and staff scheduling capabilities. Hundreds of leading hospitals and health systems rely on Hospital IQ to help them make the right operational decisions the first time, every time. To learn more, visit www.hospiq.com.
About Health Velocity Capital
Health Velocity Capital invests exclusively in innovative healthcare software and services companies. The firm’s partners have more than 50 collective years as investors, entrepreneurs and senior executives helping to build innovative companies that created important new healthcare markets and/or that became market leaders. In addition to investing on behalf of institutional investors, Health Velocity invests on behalf of a number of our nation’s largest and most influential healthcare organizations and many of their top executives who collectively represent organizations that provide health insurance to more than 150 million Americans, operate 15% of U.S. hospitals, provide pharmacy and PBM services to nearly all Americans, and provide software and services to every major hospital in the United States. For more information, please visit www.healthvelocitycapital.com.
Every day, millions of patients and caregivers rely on Baxter’s leading portfolio of critical care, nutrition, renal, hospital and surgical products. For 90 years, we’ve been operating at the critical intersection where innovations that save and sustain lives meet the healthcare providers that make it happen. With products, technologies and therapies available in more than 100 countries, Baxter’s employees worldwide are now building upon the company’s rich heritage of medical breakthroughs to advance the next generation of transformative healthcare innovations. To learn more, visit www.baxter.com and follow us on Twitter, LinkedIn and Facebook.