Collective Medical Raises $47.5 Million to Reduce Hospital Costs

WSJ Pro VC
By Heather Mack

Collective Medical Technologies Inc., a startup that aims to put patient data into the hands of caregivers, has raised a $47.5 million Series A round.

Salt Lake City, Utah-based Collective Medical has developed a virtual network for collaborative care planning intended to help reduce emergency department visits and hospital readmissions.

“It’s like a care plan meets a Google Doc,” said Chris Klomp, chief executive at Collective Medical Technologies.

The company’s platform was designed to work across electronic medical records and health-care organization administration systems. When a patient shows up at a specific place, Collective Medical’s tool functions as a means of aggregate data to notify relevant stakeholders of information that could go unnoticed.

Collective Medical’s platform is in use in 13 states, with 10 more planned for 2018.

That traction has garnered the previously bootstrapped company venture backing from Kleiner Perkins Caufield & Byers, Bessemer Ventures Partners and Maverick Ventures.

Similar companies include Andreessen Horowitz-backed PatientPing Inc., which offers a centralized platform for patient data that enables notifications when a patient moves between different care centers. Others function as care coordination platforms within a specific health center, but Collective Medical works to fold in both capabilities.

Noah Knauf, a general partner at Kleiner Perkins who led the investment, said Collective Medical’s light integration with existing health data systems makes for easy implementation that has struck a chord with customers.

“Other approaches either go too deep in-house by looking at every aspect of a hospital’s electronic health system versus following the patient across points of care. That has failed to provide utility to the front line physicians,” said Mr. Knauf, who will take a board position.

The company plans to use the funding to hire 100 employees over the next 12 to 18 months, most of which will be in the Salt Lake City region.