LeanTaaS banked on predictive analytics and machine learning in the financing round.
The mission of LeanTaaS sounds simple enough: cut healthcare wait times, improve operations, and increase patient access. Yet the Silicon Valley start-up’s technologies are anything but.
It uses predictive analytics, machine learning, and the cloud to combat these problems, which have long plagued healthcare. So far, the solutions seem to be making its hospital customers happy. And that, in turn, is making investors friendly.
LeanTaaS announced yesterday a $26 million investment from Insight Venture Partners, a global capital and private equity firm headquartered in New York City. The windfall came during the Series B financing round, according to LeanTaaS.
“Healthcare is a difficult space in which to bring about radical change,” Jeff Horing, co-founder and managing director of Insight Venture Partners, said in a statement. “We are impressed by the quality of deep customer partnerships, the product portfolio, and the team that LeanTaaS has assembled.”
Founded in 2010, the company has seen a few big paydays, but none has come close to the latest injection of capital. In summer 2016, LeanTaaS raised nearly $9 million. That came on the heels of a $3 million investment led by Sedgwick Claims Management Services the prior fall. It began with $750,000 in its coffers, according to the start-up tracker CrunchBase.
As Horing noted, the up-and-comer has struck a number of partnerships. More than 40 of the country’s “leading hospitals and infusion centers” use LeanTaaS software, according to the company.
The results, it seems, are strong. Its customers have seen wait times for appointments and surgeries drop by as much as 50%. Patient access has climbed by up to 30%. Higher revenues and curtailed costs have helped boost performance by 20%, according to LeanTaaS.
How? LeanTaaS uses “advanced data science and mathematics” to help healthcare organizations fix “fundamentally flawed” formulae used to schedule patient appointments, the start-up said. That has freed up expensive equipment and beds from being used too little or too often on a given day, it claimed.
LeanTaaS does that with algorithms, enabling institutions to optimize their practices and even hold off on spending more money on extra staff, equipment, and facilities. The idea is all about going lean and smart—and scaling predictive analytics and software to meet the needs of various organizations, according to the company.
“This investment from Insight Venture Partners is a strong validation of our approach and will enable us to dramatically accelerate our growth over the coming years,” LeanTaaS’s founder and CEO, Mohan Giridharadas, said in a statement.
The executive plans to use the money to fuel the iQueue platform, a cloud-based service that works with electronic health records in infusion centers and operating rooms. In the spring, the company launched iQueue Labs, which aims to develop solutions develop solutions for diagnostic imaging departments, pharmacies, inpatient beds, emergency departments, and labs, according to LeanTaaS.