The U.S. spends about $4 trillion on healthcare annually, of which $1 trillion is spent on healthcare administration. As with many issues in healthcare, a lot of the executive work suppliers should do to handle their clinicians’ credentials is guide, paper-based, time-intensive and housed in disparate methods.
This drawback led to the founding of Medallion, a supplier administration platform that automates licensing, persevering with schooling monitoring, credentialing and compliance. On Thursday, the startup closed a $35 million Collection C funding spherical, bringing the whole quantity of capital it has raised to $85 million. The spherical was co-led by Spark Capital and new investor GV (previously Google Ventures), with participation from Salesforce Ventures, Sequoia Capital, Optum Ventures, BoxGroup and Elad Gil.
Derek Lo, an alum of this 12 months’s Forbes 30 Below 30 Healthcare record, based Medallion in 2020 with the mission of decreasing healthcare’s overhead spend on administration by automating the guide parts of the credentialing and persevering with schooling course of. Medallion’s platform allows healthcare organizations to get their suppliers licensed in new states, renew their present licenses, monitor supplier progress towards persevering with schooling completion, enroll with insurance coverage and confirm a supplier’s credentials.
The San Francisco-based startup sells its software program to digital well being firms, well being methods, supplier teams and payers. It now has greater than 200 prospects, starting from smaller organizations with 5-10 staff to organizations with greater than 1,000 staff. Medallion can even work with unbiased doctor practices so long as they’ve 5 or extra suppliers, Lo stated.
With out automation software program, organizations should manually monitor their suppliers’ license renewal dates, in addition to the states during which purposes are pending. In addition they should handle all back-and forth communication with suppliers and state boards, which might add hours onto workers’s work schedules and trigger burnout.
“Medallion eliminates all of this work for our prospects and manages the complete course of end-to-end, even the communication with the state board and the supplier,” Lo stated. “It’s a really related course of for payer enrollments, too.”
Like every SaaS firm, Medallion sells its know-how with a platform price. It additionally gives further bundles for licensing, payer enrollment and credentialing. A few of the prospects utilizing Medallion’s platform embody Headspace Well being, Oak Avenue Well being, Carbon Well being, MedExpress, hims, Tia and Longevity Well being Plan of Florida.
The startup’s opponents embody symplr, Availity and MedTrainer. Lo declared that Medallion is completely different from these firms as a result of no different platform is complete sufficient to supply an all-in-one platform — his firm’s software program can handle all the things from licensing and persevering with schooling to credentialing and payer enrollment.
Medallion’s funding spherical comes amid fast progress — simply six months after its Collection B and twelve months after its Collection A. The corporate has additionally almost doubled its worker depend to 150 since its Collection B.
The brand new funding will likely be used to “double down” on Medallion’s efforts to broaden the variety of its buyer base, as digital well being firms at the moment comprise the bulk. The corporate is seeking to carry on extra well being system and payer prospects, in line with Lo. He stated the cash can even be used to speed up product growth and broaden its strategic partnerships.
The Collection C funding takes Medallion’s post-money valuation to $350 million, up from $200 million after the final spherical.
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