Telehealth Startup Medici Secures $24.2M Funding to Expand Platform Connecting Patients with Primary Care Physicians

Medici, a telehealth startup based in Austin, Texas, has raised $24.2 million in funding, according to recent filings with the U.S. Securities and Exchange Commission. According to founder and CEO Clinton Phillips, the capital came from private investments by ten individuals, most of whom are CEOs of large non-healthcare companies. The post-financing funds will be used to establish offices in Europe and South Africa, hire additional staff in the United States, and expand operations into 12 new states across the U.S. mainland.

“Although most of them are not from the healthcare sector, they are very pleased to see changes in the medical field,” said Clinton Phillips. “Many people are supporters of 2nd.MD. They recognize that I have accumulated considerable expertise and demonstrated strong accuracy in judging industry trends, and they view this as a significant opportunity.”

2nd.MD is Phillips’ former company, where he continues to serve in an advisory capacity. Although both 2nd.MD and Medici are telehealth companies, their user bases differ significantly. 2nd.MD leverages telecommunications technology to connect individuals with highly complex medical conditions to specialists for diagnostic opinions. In contrast, Medici’s core model focuses on linking patients with their own primary care physicians via telehealth, facilitating communication through text, video, and images.

“In contrast, 2nd.MD has significant advantages in handling the complexity of diseases. This is also one of the mainstream models currently adopted by telemedicine companies,” said Phillip. “The physician team at 2nd.MD consists of top-tier doctors from leading hospitals, addressing some of the most complex aspects of healthcare. Medici, on the other hand, does not focus on disease complexity but primarily manages the routine, straightforward interactions between physicians and patients.”

In addition to connecting you with your personal physician, the Medici app features a “Doctor’s Day” function that allows users to discuss common topics such as Zika virus and insomnia. It also enables patients to select another Medici-affiliated physician if their personal physician is unavailable.

Unlike other leaders in the telemedicine sector, Medici primarily targets physicians, providing them with software services that enable remote consultations with their own patients. When it comes to telemedicine, one issue is unavoidable: data security.

The platform is secure and its data standards comply with HIPAA regulations, thereby avoiding the core issues underlying most legal controversies surrounding telemedicine, including the provisions that prompted Teladoc’s antitrust lawsuit against the Texas Medical Board.

Telemedicine is also part of an increasingly crowded healthcare market, and Medici clearly aims to gain a competitive advantage through a differentiated model. Users can download the app and send requests to their physicians, while Medici’s staff are always available to address any questions from physicians regarding HIPAA compliance or other privacy concerns.

However, telemedicine is currently a hot-button issue in Texas. The Texas Medical Board has expressed skepticism about diagnoses and prescription treatments being delivered via online connections between patients and physicians. The Board maintains that, at present, physicians and patients must engage in face-to-face consultations before treatment and prescriptions can be provided.

Currently, the company has expanded into various markets across Texas. It is now building relationships with healthcare providers and other partners. Of course, Medici remains a newcomer in the telehealth market, with only 13 employees at its Austin headquarters. The company expects to expand into 12 additional states by early next year.