Health Catalyst, a data analytics company, has closed a $100 million Series F equity and debt funding round led by OrbiMed. Sequoia Capital, Norwest Venture Partners, Sands Capital Ventures, UPMC Enterprises and Kaiser Permanente Ventures also participated.
The round propels the Salt Lake City company’s valuation above $1 billion, making it the newest healthcare unicorn.
“We’re excited to see ourselves crossing that mile marker, but we’re cognizant that there’s much work ahead,” CEO Dan Burton said in a recent phone interview.
Burton said the company plans to use the new access to capital in three key ways. The first is to continue expanding its data platform. It also wants to invest in its analytics applications layer, which sits on top of the data platform. Finally, Health Catalyst plans to continue hiring and retaining experts with clinical, analytics and financial expertise.
Founded in 2008, the company offers numerous analytics and process improvement solutions. Its data operating system, which it introduced in 2017, brings together the elements of data warehousing, clinical data repositories and health information exchanges in one platform.
Health Catalyst’s customers include Intermountain Healthcare, UPMC, Texas Children’s Hospital, MedStar Health and Allina Health.
Burton said his company currently has about 115 health system clients. He also noted Health Catalyst boosted its customer base through its 2018 acquisition of population health management company Medicity. Also based in Salt Lake City, Medicity offers various interoperability, business intelligence and patient engagement solutions for health systems, physician practices and HIEs. In early 2011, health insurer Aetna bought it for $500 million.
In 2018, Health Catalyst added products like Touchstone, an AI-powered analytics application, and the Patient Safety Monitor Suite: Surveillance Module, which combines analytics and clinician review of data to detect and predict threats to patient safety.
The Utah organization also brought on new strategic advisors last year, such as Eric Topol, founder and director of the Scripps Translational Science Institute; Timothy Zoph, the former SVP of administration and CIO at Northwestern Medicine; and Brent James, the first chief quality officer of Intermountain Healthcare. James is also an investor in this latest financing round.
Moving forward, Burton said one of Health Catalyst’s 2019 goals is to consider how it can “further accelerate our client success in realizing meaningful improvement.”