Its cloud-based solutions connect payers and providers.
Madaket Health, a startup that aims to optimize data sharing between healthcare providers and payers, has earned $10 million from investors, who see great potential in its cloud-based, automated solutions.
The company, founded in 2012 in Cambridge, Massachusetts, raised the money in its Series B funding round. Qiming Venture Partners led the blitz, with help from Experian Ventures, the PNC Financial Services Group and Salesforce Ventures, according to an announcement.
“Our platform is a game changer, as it eliminates administrative burdens placed on providers, enabling them to focus on delivering high-quality, patient-centric care,” Jim Dougherty, Madaket’s CEO and co-founder, said in a statement.
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Madaket Health intends to use the money to “rapidly extend its platform solution deeper into the administrative inefficiencies in the payer-provider ecosystem,” according to the announcement.
Its initial products, focusing on electronic data interchange (EDI) and payer enrollment and credentialing, are designed to reduce errors and cut waste, according to the company. So far, the company has processed more than 1.5 million EDI enrollments.
“We brought our proven track record of removing waste, error and frustration to an industry — healthcare — that spends $130 billion on unnecessary administrative tasks,” Dougherty added. “Our investment partners believe in our mission to become the de facto standard for all administrative data transactions between providers and payers and want to support our growth to meet the increasing demand and accelerate product innovation.”
Backers like Gary Rieschel, who’s a co-founder of Qiming Venture Partners, said healthcare is at a stage where innovation — and disruption — often comes from outside tech leaders. His company put its money behind Madaket Health because of its leaders’ experience in software as a service, leaning on their Harvard Square workspace and Koa Labs roots. The team consists of entrepreneurs, technologists and healthcare professionals.
“They bring a fresh perspective to reducing waste and friction in the healthcare industry, and they have a consistent track record of creating significant shareholder value,” Rieschel said. “Their early successes are tangible, and we are excited about the dynamic group of new strategic investors who will fuel the company’s next phase of innovation and growth.”
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