NextHealth Technologies Secures $17M Series B Funding to Expand Predictive Healthcare Analytics Platform

VCBeat (WeChat Official Account: vcbeat) has learned that on March 4, NextHealth Technologies, a leading U.S. healthcare data analytics company, announced the completion of a $17 million Series B financing round led by TT Capital Partners (TTCP), with participation from Blue Cross of Idaho and existing investor Norwest Venture Partners. Prior to 2017, NextHealth Technologies had completed two seed rounds and one Series A round, raising a total of $9.5 million.

NextHealth Technologies will use the proceeds from this funding round to accelerate market expansion and leverage new resources and data to further support engagement between healthcare institutions and consumers, while continuing to reduce healthcare costs and improve patient health.

NextHealth Technologies, founded in 2013 and headquartered in South Carolina, provides healthcare data predictive analytics and consumer engagement platform services to address high-cost healthcare expenditures. By combining behavioral science with predictive analytics, the company analyzes member, demographic, lifestyle, and geospatial data to identify individuals who unnecessarily utilize emergency department services. Upon determining the need for continued follow-up, NextHealth Technologies develops tailored interventions for specific cases, reminding patients about telehealth and urgent care clinic options through phone calls, emails, letters, and even refrigerator magnets.

By adopting a few simple lifestyle changes, individuals can avoid unnecessary medical expenses, thereby reducing healthcare costs. To ensure the accuracy of its interventions, NextHealth regularly conducts statistical analyses on control groups. To date, NextHealth’s HITRUST-certified analytics platform has reached 45 million users in the United States.

Image source: NextHealth Technologies official website

“As health plans increasingly seek pathways to add value for their members, they have come to recognize that predicting behaviors and striving to influence them in new, meaningful ways can have a powerful impact on costs and outcomes,” said Ryan Engle, Partner at TTCP. “NextHealth Technologies is uniquely positioned to deliver scalable and compelling solutions, and we look forward to the company’s continued innovation and collaboration with its experienced leadership team.”

“Continuously optimizing resources, enabling members to access effective medical services, and making faster, data-driven decisions have become the new competitive edge for health plans,” said Casper de Clercq, General Partner at Norwest Venture Partners. “NextHealth Technologies’ advanced analytics platform provides payers with a rapid-tracking approach to evaluate and enhance their significant investments, optimize outcomes, and maximize return on investment.”

“By 2023, annual spending on big data analytics in healthcare is projected to exceed $22 billion, as healthcare costs continue to rise and competitive pressures intensify. Therefore, it has become more important than ever to deliver more efficient healthcare services through health plans while simultaneously reducing medical costs,” said Eric Grossman, CEO of NextHealth Technologies. “NextHealth Technologies is delighted to have investors like TT Capital Partners, who maintain strong ties within the healthcare industry and help us expand our innovative solutions in the market.”

TT Capital Partners (TTCP) is the private equity arm of Triple Tree, specializing in mergers and acquisitions, financial restructuring, and principal investment services. TT Capital Partners focuses on investments in the healthcare sector, partnering with medical technology and services companies with the potential to become market leaders.

Norwest Venture Partners is a premier multi-stage investment firm managing over $7.5 billion in capital. Since its inception, Norwest Venture Partners has invested in more than 600 companies and partnered with over 140 companies across its venture capital and growth equity portfolios. The firm invests in early- to late-stage companies across various industries, with a focus on consumer, enterprise, and healthcare. Norwest Venture Partners maintains offices in Palo Alto and San Francisco, with subsidiaries in India and Israel.

(Compiled by: Tan Xin)