Clinicient raises $5M to expand rehab revenue cycle management business
24th December 2015
Health IT vendor Clinicient, which has focused on software for outpatient rehabilitation therapy practices, has raised $5 million in debt funding, according to a Form D filing with the U.S. Securities and Exchange Commission. It will use the funding to expand its business to new markets, according to a Portland Business Journal article.
Clinicient CEO Rick Jung said the funding came from Catalyst Investors, an existing investor, to support sales and marketing, according to an email referenced by the article. He noted that he company grew by 50 percent this year and expects to duplicate that in 2016. The capital would give it “some more room to scale.”
The core business for the 11 year-old company has been software for physical therapy practices from electronic medical records to billing software and revenue cycle management.
The fundraise follows an earlier round of funding at the start of the year from Silicon Valley Bank. Clinicient works with therapists in 45 states in the U.S. and it claims that its software supports the collection of nearly $1 billion in payments annually.
A report on revenue cycle management by Micro Market Monitor published earlier thus year noted a substantial unmet need for new versions of RCM solutions, stemming from the consolidation of healthcare providers and decline in reimbursements rates.
“These factors have equally contributed to the overall requirement of automating internal operational processes in hospitals and clinics with an aim of reducing expenditure,” the report read.