Bank Invests in Market-Leading Innovator of Predictive Analytics and Machine Learning Solutions Focused on Improving the Operational Efficiency of Healthcare
LeanTaaS, Inc., a Silicon Valley software innovator that helps hospitals and health systems increase access and lower cost through predictive and prescriptive analytics, today announced it has closed a $40 million Series C3 round of financing from Goldman Sachs’ Merchant Banking Division. The investment by Goldman Sachs is in addition to the $61 million previously invested by Insight Partners over the three prior funding rounds beginning in November 2017, bringing the total amount raised within the last 24 months to $101 million.
With healthcare reform, an aging population, and an increasing number of new cancer diagnoses each year, the demand for healthcare services will continue to rise. At the same time, pressure from payers to improve efficiency means that providers cannot increase capacity indefinitely by building new facilities or hiring additional staff. Instead, they will need to use sophisticated optimization methods to match the growing demand for healthcare services with the operational constraints imposed by their existing assets (people, rooms, equipment).
LeanTaaS uses lean principles, machine learning, and predictive analytics to digitally transform core operational processes to increase patient access, decrease wait times, improve staff satisfaction, reduce healthcare delivery costs, and improve operational performance. LeanTaaS’ cloud-based iQueue platform uses sophisticated optimization algorithms to match the demand for expensive healthcare resources — operating rooms, infusion chairs, ambulatory clinics, imaging assets, inpatient beds — with the availability of supply, taking hundreds of real-world operational constraints into account. The algorithms continuously learn by comparing the expected versus the actual operational performance in order to ensure that the impact is sustained well into the future.
Improving the Availability of Health Systems
iQueue for Infusion Centers has been deployed at 180 infusion centers among many of the leading cancer institutions in the country including six of the top 10 cancer hospitals as ranked by U.S. News & World Report, 20 National Comprehensive Cancer Network locations, and 30 National Cancer Institute member institutions. LeanTaaS customers have improved patient access by increasing the effective capacity of infusion centers by 15-25% while simultaneously reducing wait times by up to 50%, which makes a meaningful difference to the patient experience.
iQueue for Operating Rooms has been deployed at 105 hospitals belonging to 24 different health systems. The solution unlocks OR capacity so that more cases can be performed in the same number of ORs without extending business hours. It helps surgeons find more OR time when they need it and right-sizes OR block allocations by collecting and making available the right set of underutilized blocks, which can be provided to surgeons needing more time as well as used to attract new surgeons. The solution provides surgeons with credible, objective, data-driven performance metrics accessed through either mobile or desktop browser.
iQueue for Operating Rooms customers typically see 3-6% improvements in their OR utilization. In only four months of using the solution, one health system reported they had unlocked over 390,000 minutes of OR capacity systemwide, representing over $10 million in ROI. That same health system identified more than 1,200 collectable blocks in a quarter which, if only 25% were repurposed, represents another $10+ million ROI opportunity.
“LeanTaaS has developed a powerful prescriptive analytics platform that helps bend the access and cost curves in health systems, enabling customers to achieve tangible operational improvements,” said Antoine Munfa, a managing director with Goldman Sachs’ Merchant Banking Division. Paul Pate, a vice president with Goldman Sachs’ Merchant Banking Division, added, “LeanTaaS delivers its platform as scalable, web-based software which can be configured to serve a wide array of healthcare environments.”
“LeanTaaS’ iQueue represents a rare nexus of product leadership, robust ROI, and fast time to value for hospitals. As software-focused investors, we have found the product’s impact on customers to be very impressive in general, but in particular considering how hard it is to deliver value with true SaaS products in healthcare environments,” said Peter Segall, former healthcare IT CEO and now managing director at Insight Partners.
The financing will fund the continued expansion of the LeanTaaS iQueue platform, which currently consists of three solutions: iQueue for Infusion Centers, iQueue for Operating Rooms and iQueue for Clinics. The funding will also significantly accelerate the hiring of key leaders in roles throughout the company including engineering, data science, product management, sales, and marketing. LeanTaaS has nearly doubled the size of its team in 2019 by hiring more than 85 people in the last 10 months including experienced leaders from Rally Health, GE Centricity, Epic, Cerner, and Lehigh Valley Health Network.
“With Goldman Sachs and Insight Partners as our two major financial investors, we continue to strengthen our access to an incredibly diverse set of resources including expertise, network and funding to accelerate the pace at which we help hospitals and healthcare providers bend their access and cost curves,” said Mohan Giridharadas, founder and CEO of LeanTaaS.