Collective Medical Secures $47.5M
SALT LAKE CITY, UT, Collective Medical, delivering the nation's largest network for care collaboration, has secured $47.5 million in Series A funding.
The investment, led by Kleiner Perkins, will be used to expand and advance the company's care team collaboration network accelerating efforts to drive better patient outcomes nationwide.
Bessemer Venture Partners, Maverick Ventures, Kaiser Permanente Ventures, Providence Ventures, Peterson Ventures, and Epic Ventures also participated in the round.
Utah-based Collective Medical, which has been bootstrapped for eight years, has quietly developed the nation's largest network for real-time care collaboration. Collective Medical's technology addresses the full continuum of care in support of many of the country's most vulnerable individuals-patients with complex needs that are not met at any single point of care. By unifying providers and payers through real-time information alerts, patient context, and collaborative care planning, Collective Medical empowers care teams to identify patients with complex needs and help them get the care they need, when they need it, from those best positioned to deliver it. Collective Medical's approach has been proven to reduce avoidable emergency department (ED) visits and hospital readmissions, ease transitions of care, and eliminate unnecessary risk and friction from care delivery.
"We're putting collaboration at the heart of the solution to a fragmented healthcare system," says Chris Klomp, CEO of Collective Medical. "Our job is to connect care teams. By arming providers and payers with real-time insights and a platform to seamlessly collaborate across organizations and care settings, we ensure patients don't slip through the cracks." Klomp adds that, "we are beyond excited and grateful to be joined by such an extraordinary group of investors who share our vision for further enriching and expanding our network to help care teams provide the most effective care possible."
Collective Medical is engaged with every national health plan in the country, hundreds of hospitals and health systems, and tens of thousands of providers and care managers including those in emergency departments, primary care practices, skilled nursing facilities, home health agencies, emergency medical services, and mental and behavioral health organizations. Collective Medical's network has visibility across 13 states, with an additional 10 states expected to go live in 2018.
"Event notification systems (ENS) and care coordination applications have historically struggled to provide actionable information to providers at the point-of-care," says Noah Knauf, partner at Kleiner Perkins. "Collective Medical is the first technology we've seen that allows the providers and payers in a local healthcare system to efficiently collaborate, delivering significantly better outcomes through risk analytics, real-time notifications, and shared care planning tools. Supporting this team is a rare opportunity to be a part of something that is meaningfully changing the way care is delivered in this country."
Collective Medical improves outcomes and lowers costs on an impressive scale. In a Brookings Institution review of Medicaid patients who visited emergency rooms in Washington State, Collective Medical's network and EDIE application -- allowing actionable, real-time coordination across organizations -- was one of the core strategies for lowering the number of ED visits by patients with patterns of high ED utilization. By partnering with Collective Medical to focus on these patients, Washington State reported $34 million in savings in emergency costs and a decline of 9.9 percent in emergency department visits in its first year of use in 2013.
Similar results have been experienced across the country. "Collective Medical has been an integral part of our hospital system's efforts to coordinate care for patients with complex needs," says Dr. Maria Raven, MPH, MSc, a practicing emergency medicine physician and health services researcher and an associate professor of emergency medicine at UCSF. "With our partnership, we're collaborating on our at-risk patients' social determinants as well as curbing the opioid epidemic."
Mitigating the opioid epidemic is a single but timely demonstration of the power of the Collective Medical network. Using the company's partnership with Washington State as an example, care team collaboration and coordination through Collective Medical has reduced opioid prescriptions coming out of the ED by 24 percent since the program's inception.
A recent evaluation of Collective Medical's impact throughout the state of Oregon, conducted by the Oregon Health Leadership Council, found a promising downward trend in ED visits by patients with history of high ED utilization during a three-year period. As a participant in this evaluation, Kaiser Permanente Northwest initially used Collective Medical's EDIE application to identify and collaborate on care plans for a group of approximately 363 patients with complex clinical and social challenges who visited the ED more than six times in six months. Over the three years of this program Kaiser has seen a 42 percent reduction in ED visits and a 47 percent reduction in inpatient admissions for those individuals enrolled in this program.
Collective Medical will use the funding to expand and advance its network with the goal of empowering care teams across the country to provide patients with the most effective care. As a part of this effort, Collective Medical plans to expand its leadership team and scale its engineering, clinical support, sales and marketing organizations. The company anticipates hiring more than 100 additional team members in the next 12 - 18 months, with the majority based in its Salt Lake City headquarters.
Collective Medical is endorsed as a best practice for emergency medicine by the American College of Emergency Physicians. The company has been recognized by Inc. Magazine and by the MountainWest Capital Network as one of Utah's fastest growing companies.
Learn more about Collective Medical's impact at www.collectivemedical.com.
ABOUT COLLECTIVE MEDICAL
Collective Medical empowers care teams to improve patient outcomes by closing the communication gaps that undermine patient care through seamless collaboration. With a nationwide network engaged with every national health plan in the country, hundreds of hospitals and health systems and tens of thousands of providers -- including hospitals, emergency departments, skilled nursing facilities, primary care providers, mental and behavioral health clinics, and others -- Collective Medical's system-agnostic platform is trusted by healthcare organizations and payers to identify at-risk and complex patients and facilitate actionable collaboration to make better care decisions and improve outcomes. Based in Salt Lake City, Collective Medical is proven to streamline transitions of care, improve coordination across diverse care teams, and reduce unnecessary hospital admissions. Learn more at www.collectivemedical.com and follow us on Twitter, Facebook, and LinkedIn.
ABOUT KLEINER PERKINS
Kleiner Perkins partners with the brightest entrepreneurs to turn disruptive ideas into world-changing businesses. With $10 billion raised through 20 venture funds and four growth funds, the firm has invested in over 850 companies including pioneers such as Google, App Dynamics, Amazon, Flexus Biosciences, Nest, Waze, Twitter, JD.com and Square. Kleiner Perkins offers entrepreneurs years of operating experience, puts them at the center of an influential network, and accelerates their companies from success to significance. For more information, visit http://www.kpcb.com and follow us @kpcb.
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