Verato Secures $10 Million Series C Funding to Advance Cloud-Based Patient Matching and Master Index Technology

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media that on January 7 (U.S. local time), Verato, a company providing patient matching technology, announced the completion of a $10 million Series C financing round. The round was led by Bessemer Venture Partners and Columbia Capital, with participation from Blue Heron Capital and the California Health Care Foundation.

Verato is a cloud-based provider of patient matching and master index technology, founded in February 2012 and headquartered in Virginia, USA. Verato’s patient matching technology is more cost-effective, faster to implement, and more scalable than traditional solutions, with a commitment to eliminating duplicate medical records.

It is reported that the funds will be used to promote Verato’s revolutionary new technology, accelerating its adoption across all sectors, including healthcare providers, health plans, healthcare services companies, and health tech firms.

Patient matching is the process of accurately linking and attributing health data to the correct patient. This enables physicians, caregivers, and claims processors to gain a comprehensive understanding of the patient’s condition and deliver care with the highest success rate, efficiency, and safety, whereas duplicate records are indicative of poor patient matching.

On average, 18% of records within health systems are duplicates, meaning that nearly one in five patients lacks a complete medical record. This figure is halved when attempting to assemble composite records across health systems during information exchange. Duplicate records lead to the rejection of one-third of claims, costing health systems approximately $1.5 million annually, with an estimated cost of $2,000 per inpatient. Furthermore, duplicate records significantly exacerbate patient safety issues and drive up healthcare costs.

To address this challenge, Verato offers a cloud-based patient matching platform that links patient records with the highest accuracy in the industry, even when demographic data are inaccurate, outdated, incomplete, or inconsistent across health records. Verato employs an innovative big-data approach to patient matching that is not constrained by the quality of the underlying patient data used for matching. This enables healthcare providers to assemble complete patient health records at a scale 15 times greater than what is achievable with current technologies, thereby delivering higher-quality care while reducing costs and risks.

Verato now provides more accurate and complete health information to healthcare providers, health plans, and health information exchanges, which collectively serve over 100 million patients across the United States.

“This investment is critically important for the company’s next stage of development, as it supports our need to leverage technology to address patient matching challenges,” said Mark LaRow, CEO of Verato. “Existing patient matching technologies have remained largely unchanged for nearly a decade, serving as the root cause of the duplicate records crisis, which severely impacts care quality, patient safety, and healthcare costs, leading to a continued decline in healthcare efficiency. With Verato’s new solution, I am confident that this funding will help us resolve this persistent issue in healthcare.”

Bessemer Venture Partners is one of the most experienced early-stage venture capital firms globally, with a portfolio of over 200 companies. It helps visionary entrepreneurs build a solid foundation and supports their companies through every stage of growth.

Columbia Capital is a venture capital firm specializing in enterprise IT, internet infrastructure, and mobile investments, headquartered in Virginia. The company adopts a securities market-oriented investment approach to identify active market opportunities.

Blue Heron Capital is a private equity firm headquartered in Virginia that invests in healthcare and technology-enabled business services companies.

The California Health Care Foundation (CHCF) is committed to advancing meaningful, measurable improvements to enhance the healthcare delivery system and transform how medical services are provided to Californians, particularly to low-income populations and those whose needs are not adequately met by the current system.