Medmo Files for IPO After Boosting Imaging Order Completion Rates by 30% and Securing Strong Angel Investor Backing

On November 20, 2023, medical imaging technology company Medmo announced that it had secured $9 million in Series A financing. The round was led by Lerer Hippeau, with participation from existing investors Jerusalem Venture Partners, C2 Ventures, and Stone IsraVentures. Additionally, a number of prominent angel investors participated in the round, including Elliot Cohen, founder of PillPack (acquired by Amazon), and Simon Bolz and Dr. Simon Lorenz, co-founders of Klara (acquired by ModMed).

Medmo, founded in 2017, had previously completed three rounds of seed financing. With the recent closure of its Series D round, Medmo has raised a total of $15.9 million. The company intends to use these funds to further accelerate its rapid expansion and platform development, as well as to fine-tune its platform.

Among current medical diagnostic methods, medical imaging data serves as the primary source of information for disease screening and treatment, as well as a crucial tool for assisting clinical diagnosis and therapy. However, in Bloomberg’s Global Healthcare Efficiency Index, which ranks 55 countries, the United States places near the bottom at 50th. Up to 40% of medical imaging orders in the U.S. are frequently delayed or never completed. This operational inefficiency has led to lower service ratings for medical imaging providers and worsened patient outcomes.

As a startup aimed at simplifying the medical imaging appointment process, Medmo connects patients with local medical centers that provide medical examination and scanning services, offering a range of imaging tests. By improving scheduling, accelerating patient intake, reducing costs, and maximizing the quality of care for MRI, CT, chest X-rays, ultrasounds, and X-rays, Medmo enables a seamless imaging experience.

Lucas Takahashi is the co-founder and CEO of Medmo, with prior work experience at BlackRock, GE Capital, and Axiom, a venture-backed legal services marketplace. As a legal professional embarking on his first venture in the healthcare sector, Lucas faced significant challenges in securing seed funding.

For investors, the sources and methods of profitability are secondary factors influencing investment decisions; profitability itself is the primary consideration. However, for Medmo, which aims to “help patients reduce medical consultation costs,” a clear path to profitability in its early stages is difficult to demonstrate. Even one of its key partners, physicians, remain “skeptical about Medmo’s future potential.” For startups, securing financing is undoubtedly a challenging step, let alone for Lucas, who is crossing industry boundaries to enter the healthcare sector.

Fortunately, Medeo’s other co-founder, Christopher Kelly, had prior entrepreneurial success. Kelly is a clinical cardiologist at UNC Rex Hospital in Raleigh, North Carolina. He earned his M.D. from Columbia University Vagelos College of Physicians and Surgeons and completed his residency, chief residency, and fellowship at NewYork-Presbyterian/Columbia University Irving Medical Center. Previously, Chris founded Exact Healthcare, an online platform designed for healthcare professionals that aims to enable physicians to find fulfillment in their work while delivering high-quality, personalized care to patients.

As a cardiologist, Chris is well aware of the challenges physicians face in today’s healthcare environment; meanwhile, as a physician who regularly treats uninsured patients, he believes that “a service is needed to help people access medical care at predictable and affordable prices.”

Lucas and Chris reached a consensus that quality healthcare should be a right rather than a privilege, and that modern healthcare should focus on increasing access and reducing costs—this was the original intent behind the founding of Medmo.

Medmo Members. Image source: Medmo

According to a 2019 CBS News report, 40% of Americans cannot afford medical treatment costs exceeding $400, and 25% have had to forgo necessary care due to unaffordable medical expenses.

Under the U.S. healthcare model, individuals with high-deductible plans or no insurance are typically required to pay the full cost of care. In contrast, under Medmo’s pricing model, patients pay only $350 for an MRI or $300 for a CT scan. By using Medmo, patients can save hundreds of dollars while still receiving high-quality imaging services at local medical imaging centers. Patients also have the option to use their insurance or take advantage of exclusive out-of-pocket rates that offer savings of up to 80%, further reducing costs.

According to Medmo, patients need only provide their availability and location, whereupon Medmo’s care team will schedule the appointment, coordinate with medical imaging providers, and ensure that both patients and physicians receive imaging reports in a timely manner. Meanwhile, the Medmo online platform can automatically send regular messages to patients to monitor their medication adherence in real time.

Patient Appointment Process Source: Medmo

Thus, the Medmo online platform serves three major functions: First, by leveraging the synergy between suppliers and physicians, it enables timely maintenance and updates of medication lists. Second, based on patients’ continuously updated health data, it allows physicians to anticipate when prescribed medications are nearing depletion. Third, it collects, analyzes, and provides home-measured medical data to help patients better understand their own health conditions.

“In interviews, Lucas stated that doctors devote considerable time and energy to their patients, yet cumbersome clinical workflows undermine efficiency. This is precisely the operational challenge Medmo aims to resolve for physicians.”

Medmo Physician Workflow. Image source: Medmo

Specifically, Medmo integrates seamlessly into physicians' existing workflows by ingesting orders via EMR or API integration. Physicians can submit orders through fax, EMR, or directly within the application. The care team then coordinates prior authorizations to facilitate patient scheduling while providing real-time updates on order status. This process enhances physicians' clinical efficiency.

Generally, once patients leave the office, imaging centers are unable to track their clinical status in a timely manner. Staff members must spend time contacting patients via phone and fax to obtain updates on their condition. These delays further reduce the utilization rates and operational efficiency of imaging equipment.

Medmo has addressed this issue: the platform helps patients connect with the best imaging centers while providing these centers with complete information on patient schedules and orders, eliminating the need for imaging centers to shuttle back and forth between patients and physicians.

Medmo Online Platform Workflow Demonstration. Image source: Medmo

Centered in New York, Medmo collaborates with more than 50 imaging centers accredited by the American College of Radiology or the Intersocietal Accreditation Commission. On June 1, 2023, Sorin Medical P.C. partnered with Medmo to streamline medical imaging for patients.

On August 22, 2023, IHPlans partnered with Medmo to provide member imaging solutions.

From traditional primary care groups to large multi-specialty health systems and virtual care groups, Medmo has expanded nationwide across the United States, providing comprehensive support to a diverse range of clients.

In a complex and highly fragmented market, Medmo establishes connections between patients, physicians, and medical imaging centers. By streamlining the care journey, it alleviates the administrative burden on healthcare institutions and reduces overall healthcare costs. Medmo makes imaging more efficient for everyone, which also explains its year-over-year growth rate of over tenfold.

“Our goal is to make a significant portion of healthcare easier for patients and, most importantly, more affordable.” Founder Lucas’s determination is increasingly being realized as Medmo continues to grow. The future of Medmo is also worth watching and anticipating.