Modernizing Medicine Secures $231 Million Investment from Warburg Pincus to Expand Mobile EHR Platform

VCBeat (WeChat: vcbeat) has learned that Modernizing Medicine, a professional mobile EHR (Electronic Health Record) provider, announced that the global private equity investment firmWarburg PincusIt invested $231 million to provide liquidity for existing shareholders, fund further expansion, and support future strategic initiatives. Modernizing Medicine has raised capital multiple times; with this latest round, its total funding has surpassed $322 million.

Modernizing Medicine Historical Financing Data

Modernizing Medicine is an electronic health record (EHR) developer based in Boca Raton, Florida, USA. Founded in 2010 by Daniel Cane and Dr. Michael Sherling, the company primarily offers a cloud-based specialty-specific electronic medical record system designed to help physicians improve efficiency and optimize outcomes. Its flagship product, Electronic Medical Assistant (EMA™), is a cloud-based specialty EHR system featuring a built-in library of medical content, aimed at saving physicians’ time.

Modernizing Medicine differs from other mobile electronic health record (EHR) systems and traditional EHRs in many respects. Modernizing Medicine offers specialty-specific solutions, including dermatology, ophthalmology, orthopedics, plastic surgery, otolaryngology, gastroenterology, urology, rheumatology, and aesthetics, with tailored user interfaces for each specialty. To meet the unique needs of different specialties, the company employs licensed physicians who collaborate with engineers to jointly develop its technology.In the fall of 2015, the company acquired at least one patent through its merger and acquisition of the gastrointestinal technology firm gMed.

Similar to DrChrono, Modernizing Medicine also offers a service that allows physicians to document clinical encounters directly on an iPad, with real-time synchronization to PCs. This enables back-office staff in the clinic to manage appointment scheduling and billing processes via PC. The patient encounter input interface of Modernizing Medicine features a 3D design and supports complete finger-based input, effectively saving physicians’ time. Its marketing slogan and services emphasize enhancing physician efficiency. Additionally, nurses can take photos of patients’ lesions using an iPad or iPhone, which are then synchronized to the PC for timely physician assessment and treatment.

To date, Modernizing Medicine offers specialized products for the dermatology, ophthalmology, orthopedics, otolaryngology, and plastic and cosmetic surgery markets. The company has over 3,300 specialist physician practices across the United States using its cloud-based EMR system. One-quarter of dermatologists in the U.S. are using Modernizing Medicine’s Electronic Medical Assistant (EMA™) iPad application to enhance patient interactions and healthcare outcomes.In 2013, VCBeat was included in Forbes’ annual ranking of America’s Most Promising Companies.

Furthermore, Modernizing Medicine also focuses on artificial intelligence, using aggregated identity recognition data to create population-level insights, which are then fed back to physicians. The company also began developing a new app in 2015 as part of the IBM Watson Ecosystem Project, calledschEMA. The app was built upon the aggregated data from EMA and EHR systems, while also incorporating Watson’s capability to parse unstructured data, thereby providing medical experts with optimal data for patient treatment plans. However, according to a spokesperson, the company is no longer actively pursuing commercialization of the application. In an email, he wrote, “Modernizing Medicine continues to explore how cognitive computing can play a role in healthcare. Its schEMA application served as an exciting proof of concept, but the company believes it still requires further maturation before it can be commercialized.”

Recently, Modernizing Medicine has been expanding beyond core EHR functionalities to offer practice management, revenue cycle management, teledermatology, analytics, and more. With this new round of financing, Modernizing Medicine plans to add further capabilities, including automated prior authorization workflows, deployment of an e-commerce platform, data interoperability, and additional telehealth features. In addition to developing new functionalities, the funding will also be used to expand business operations and provide liquidity for shareholders.

Daniel Cane, CEO and Co-Founder of Modernizing Medicine, stated: “We hope that the capital injection from Warburg Pincus will help advance our mission to transform how medical information is created, consumed, and utilized, thereby enhancing efficiency and improving outcomes. Warburg Pincus brings extensive experience in the healthcare technology sector, and this investment will enable us to further our growth, strengthen innovation, and better support our customers.” Additionally, Fred Hassan, Managing Director at Warburg Pincus, and Amr Kronfol, Head of Warburg Pincus, will join the Board of Directors of Modernizing Medicine.