Procured Health Files for IPO to Revolutionize Hospital Medical Equipment Procurement

Procured Health, headquartered in Chicago, USA, is dedicated to providing hospitals with clinical equipment procurement solutions to help them reduce unnecessary expenditures. The company was founded in 2012.

Data shows that U.S. hospitals spend approximately $125 billion annually on equipment procurement, accounting for 20%–25% of their total expenditures. Hospitals have limited sources of information regarding medical devices, making it difficult to identify alternative products with better cost-effectiveness. Fortunately, the majority of these funds are allocated to the purchase of emergency-care equipment. Nevertheless, hospitals can reduce their spending on equipment acquisition; therefore, procurement strategies for medical devices need to be optimized.

Procured Health Platform Diagram

The company has developed a solution platform to address equipment procurement issues in the management of clinical expenditures, ultimately enabling clinicians to deliver high-quality treatment services to patients.

Procured Health’s platform serves as the “Dianping” of the medical device industry, enabling physicians and healthcare professionals to share their experiences with various devices among peers. However, Procured Health is more than just a product-rating website; its value lies in building a sharing network across hospitals, where doctors can provide professional insights on device usage. Given the lack of standardized guidelines for device utilization and limited information transparency, Procured Health aims to help physicians access valuable information through its platform.

The more doctors and hospitals that join the platform, the greater the value of this project.

For patients, this initiative also holds significant value. By optimizing the procurement strategy for medical devices, hospitals can consequently refine treatment protocols, thereby reducing healthcare costs and enabling patients to receive the most effective care possible.

Hani Elias, Founder and CEO of Procured Health, stated that the company’s origins can be traced back to his tenure as a consultant at a medical device company, where he observed both the U.S. healthcare system’s efforts to maximize product value and the substantial waste incurred by hospitals in medical equipment procurement.

In August 2012, Procured Health secured $1.1 million in seed funding from Zimmerman Ventures, Blueprint Health, and Bessemer Venture Partners. In March 2014, the platform raised an additional $4 million in Series A financing from FCA Venture Partners and Jump Capital. In June 2016, Procured Health obtained $10 million in Series B funding from Heritage Group. To date, the company’s total fundraising amounts to approximately $15.1 million.

Procured Health has three operating principles:

First, deliver value to hospitals without earning profits from medical devices.

Second, focus on clinical medical device products.

Third, provide hospitals with effective data and information resources.

Reportedly, Procured Health was named one of the 74 hottest startups in Chicago in 2016.

Elias previously worked at McKinsey & Company. Regarding the third principle of Procured Health’s operational model, he noted that it differs significantly from his prior work experience. Elias stated, “In the past, we focused on delivering one hospital project after another. While a project was underway, we devoted ourselves wholeheartedly and achieved outstanding results. However, a key issue arose: once the project was completed and the consultants departed, hospitals often faced a gap in support. In contrast, Procured Health is committed to providing a platform that hospitals can rely on to address various challenges related to medical devices.”

Procured Health Team

Hani Elias, Co-founder and CEO of Procured Health, holds a Bachelor of Arts from Harvard University, as well as Master of Public Health and Juris Doctor degrees. He previously served as a consultant at McKinsey & Company and was a Co-founder of BlueprintHealth.

William Danford, Co-founder and CTO of Procured Health, holds a Bachelor’s degree in Computer Science and a Master’s degree in Economics from the University of Chicago. He previously served as Product Manager at Clarity Consulting and was Co-founder of Blueprint Health.

Eric Meizlish, Co-founder and COO of Procured Health, holds a Master’s degree in Mathematical Economics from Yale University and previously served as Co-founder of Blueprint Health.

The company’s three founders jointly established Blueprint Health in 2011. Headquartered in New York, USA, Blueprint Health is a startup accelerator focused on digital health and emerging technologies. Since its inception, the organization has invested in 52 companies, including MedPilot, BindHealth, and iMedicare. In CB Insights’ ranking of the most popular startup accelerators in the digital health sector from 2014 to the first half of 2016, Blueprint Health ranked third.