Valence Health, a leading provider of clinical integration, population health and value-based care solutions, announced today that it received a $15 million growth equity investment. This announcement comes on the heels of the company's early August news that 2014 first-half revenues were up 51% compared to the same period one year ago.

This latest round of investment is only the second round of financing the company has received in its nearly 20-year history - the first being $30 million in the summer of 2012. Led by Heritage Group, a healthcare-focused venture capital firm based in Nashville, this investment round also included Foundation Medical Partners, GE Ventures, and North Bridge Growth Equity.

'Valence Health is unique among organizations assisting healthcare providers in implementing and managing various forms of value-based care,' said Rock Morphis, Managing Director at Heritage Group. 'They have been helping providers with clinical integration, risk-arrangements and provider-sponsored plans for nearly two decades. We were attracted to Valence Health because of its proven experience, deep expertise, and mission-driven orientation to help providers.'

In an announcement this summer that included Illinois Governor Pat Quinn, the company indicated significant continued growth: in addition to growing revenues 50% over last year, the organization has added more than 150 employees this year, and will move to a new national headquarters in Chicago.

Valence Health CEO Phil Kamp sees the investment as a way for the organization to serve even more provider organizations more quickly. 'We've been steadily growing and investing in our infrastructure since our inception in 1996,' said Kamp. 'This latest round of investment allows us to accelerate our efforts to reach more providers who are pursuing various approaches to value-based care. More specifically, we will use the funds to invest in additional software development, sales and marketing, and client management resources.'

The investment group also included new investors Foundation Medical Partners (FMP), GE Ventures and existing investor North Bridge Growth Equity. FMP General Partner Bill Geary noted, 'Valence Health is a great company because they've built the infrastructure properly over a long period of time. Over nearly twenty years, they've continually reinvested in excess of a hundred million dollars into the business to better serve clients. That type of disciplined growth creates an organization that has the experience and confidence to work with clients in flexible and practical ways. They've seen just about every iteration of value-based care, and can work together with clients to create a customized, effective approach instead of dictating a one-size fits all solution.'

Doug Kingsley, Managing Director of North Bridge Growth Equity, cited the company's end-to-end solution set as the compelling reason for their reinvestment. 'Valence Health offers technology, consulting and outsourced services all under one roof to help clients at all stages of their value-based journey. Additionally, Valence Health works across all populations including Medicare, Medicaid, commercial and employee health plans, and with all forms of value-based care including clinically integrated networks, shared and full-risk arrangements, and provider-sponsored health plans. This means that Valence Health can meet all of a client's value-based care needs, saving them the time, money and risk of stitching together various point solutions.'

Following the investment, the organization's Board of Directors is comprised of Valence Health CEO Phil Kamp; Valence Health President and co-founder Todd Stockard; Rock Morphis of Heritage Group; Doug Kingsley of North Bridge Growth Equity; as well as current outside Directors Dr. Chris Kryder, founder of d2Hawkeye and former CEO of Verisk Health; Bob Sheehy, former CEO of UnitedHealthcare; and George Lynn, former CEO of AtlantiCare and two-time Board Chair of the American Hospital Association. Board Observers include Roshen Menon of North Bridge Growth Equity and Bill Geary of Foundation Medical Partners.

About Valence Health:

Valence Health provides value-based care solutions for hospitals, health systems and physicians to help them achieve clinical and financial rewards for more effectively managing patient populations. Leveraging 20 years of experience, Valence Health works with clients to design, build and manage value-based care models customized for each client including clinically integrated networks, bundled payments, risk-based contracts, accountable care organizations and provider-sponsored health plans. Providers turn to Valence Health's integrated set of advisory services, analytical solutions and outsourced services to make the volume-to-value transition with a single partner, in a practical and flexible way. Valence Health's 600 employees empower 39,000 physicians and 130 hospitals to advance the health of 20 million patients. For more information, visit www.valencehealth.com.

About Heritage Group:

Heritage Group is a Nashville-based, venture capital firm with over 25 years of experience financing and operating healthcare companies at all stages. Created by a diverse group of the nation's leading healthcare services firms, the Heritage Healthcare Innovation Fund is a $167M strategic initiative focused on investments in businesses that improve the delivery of healthcare services.

About North Bridge Growth Equity:

North Bridge Growth Equity, and its affiliate North Bridge Venture Partners, actively partner with founders and entrepreneurs of market leading companies, who are using technology to disrupt and reinvent big markets. With $3.8 billion of capital under management, the firm has funded more than 170 companies creating many billions in market value. Among those firms are Acquia, Actifio, Clarity Software Systems, Dyn, Demandware, Proto Labs, Starent Networks, Seniorlink, Smart Pak and Valence Health. The firm has offices in Waltham, MA and Palo Alto, CA. To learn more about North Bridge go to www.northbridge.com.

About Foundation Medical Partners:

Foundation Medical Partners is a team of proven healthcare technology venture capital investors known for delivering strategic industry resources, insight, and total commitment to the success of the entrepreneurs with whom they partner. Founded in 2001 and expanded in 2013, current and prior investments of the general partners and the firm collectively include Valence Health, Humedica (Optum Analytics), Predilytics, Rise Health (Best Doctors), SynapDX, eBenX (ADP), Pharmetrics, (IMS Health), Functional Neuromodulation, CardioMEMS (St. Jude Medical), CardioNet and T2 Biosystems.

About GE Ventures:

GE Ventures is committed to identifying, scaling and accelerating ideas that will make the world work better. Focused on the areas of software, advanced manufacturing, energy and healthcare, GE Ventures helps entrepreneurs and start-ups succeed by providing access to GE's technical expertise, capital and opportunities for commercialization through GE's global network of business, customers and partners. GE Ventures offers an unparalleled level of resources through its Global Research Center, including: 35,000 engineers; 5,000 research scientists; 8,000 software professionals; as well as 40,000 sales, marketing and development resources in over 100 countries. For more information, please visit http://www.ge.com/company/ge-ventures.