This round was co-led by Frist Cressey Ventures and Step 5 Capital and was supported by existing investors. Valify will use the funding to increase research and development (R&D) efforts, as well as more than double its employee base. This funding affirms Valify's position as a leading provider of technology solutions that help healthcare organizations identify savings opportunities to improve financial operations.

Since Valify's initial seed round funding in 2014, its client base has grown to 345 hospitals. In the same timeframe, the company has grown from two employees to 16 employees. Valify has also released several new product updates supported by the seed round funding, including KPI benchmarking, contract management and savings project tracking capabilities.

Valify has grown its customer base largely by supporting them as they increase focus on achieving cost savings while transitioning to value-based payment models. Valify's client data shows that purchased services spending comprises more than 35 percent of healthcare organizations' non-labor budget, and reducing these costs can save millions of dollars per system each year. In its most recent study on healthcare spending, the Institute of Medicine estimated more than $750 billion of healthcare spending is wasteful; Valify provides a tool that can help healthcare organizations quickly mitigate some of this wastefulness.

'Valify's commitment to helping healthcare organizations quickly and accurately review, understand and capitalize on savings opportunities with a robust technology solution positions them for significant growth in the coming years,' said Bryan Cressey, Partner at Frist Cressey Ventures. 'We are pleased to support Valify as they continue focusing on R&D to further enhance their offering in the healthcare space and beyond.'

Valify provides a web-based benchmarking and analytics solution that allows healthcare organizations to view purchased services spending across the enterprise in more than 1,200 categories. Organizations can quickly identify wasteful spending, duplicative services and high-cost vendors across all facilities. Valify's monthly updated and growing proprietary database of hundreds of hospitals and health systems offers comprehensive, timely and reliable peer-based perspective and benchmarks for added insight. This also allows healthcare organizations to better prepare for and manage vendor contract negotiations, which also helps improve overall revenue cycle management.

'Healthcare organizations are under a lot of pressure to streamline and reduce spending while still maintaining the highest level of care, and our solution eases this process for them,' said Chris Heckler, President and CEO of Valify. 'Our goal has always been to provide intuitive, robust technology that allows organizations to quickly identify opportunities to improve margins. This funding will allow us to further enhance our offerings through R&D, expand our footprint, grow our employee base and build momentum for additional growth in the coming years.'

About Valify

Valify is the only web-based solution that allows healthcare organizations to quickly identify, benchmark and track savings in purchased services, mitigate financial risk and reduce the overall cost of operations. Valify reveals purchased services spending across the enterprise to help identify immediate cost savings opportunities in more than 1,200 categories. With proprietary benchmarking analysis, organizations can compare purchased services spending against a monthly-updated database of hundreds of peer institutions to evaluate financial performance, prepare for vendor negotiations and reduce costs that typically comprise more than 35 percent of a hospital's non-labor budget. For more information, visit GetValify.com.