Edison Partners Leads $7 Million Growth Equity Investment in VirtualHealth
Bolsters product and team expansion for population health management leader to set new standards in value-based care
Princeton, N.J. (December 5, 2017)—Edison Partners today announced leading a $7 million growth investment in New York City-based VirtualHealth, a leading provider of population health and care management technologies. The company will use the funds to further develop its category-leading product suite and catalyze market growth.
As healthcare continues its transition to value-based models, VirtualHealth has established itself as the premier solution for risk-bearing entities and government-sponsored health plans. Since Edison’s initial investment in May 2016, VirtualHealth has experienced 400% revenue growth, 60% increase in customer base, and 5x growth in personnel. The company’s technology is leveraged by entities with more than 20 million lives under management across Medicaid, Medicare, and commercial populations.
“As one-fifth of Americans will be age 65 and over by 2025, the healthcare community urgently needs integrated care delivery solutions that enable collaboration across the full care continuum and improve patient outcomes,” said Lenard Marcus, General Partner at Edison Partners and VirtualHealth board member. “VirtualHealth’s cloud-based product suite for value-based programs provides superior market fit and tremendous opportunity to scale as more organizations seek to minimize costs while increasing quality of care.”
VirtualHealth is the 2017 recipient of the Frost & Sullivan Product Leadership Award in Population Health Management. The company’s platform delivers a 360-degree patient view and spans silos of information to give a complete care coordination solution designed to improve patient outcomes and reduce re-admission rates. It is uniquely customizable and interoperable, providing an operational management and intelligence layer that integrates seamlessly with existing enterprise infrastructure. VirtualHealth provides the population health and care management backbone for a number of the country’s largest and most innovative health plans, systems, and facilities.
“As the first platform purpose-built for integrated value-based care, we’re growing exponentially and need a long-term partner that innately understands the challenges and opportunities of healthcare information technology,” said Adam Sabloff, founder and CEO of VirtualHealth. “With the help of Edison Partners, we have honed our message, improved organizational design, and refined our sales strategies. Kevin Hill, specifically, as board director and Edison Director Network member, has helped us fortify the team, build strategic sales relationships, and enhance our offering as we continue to transform care delivery.”
VirtualHealth’s current customers include national and regional health plans, leading managed care organizations, human services agencies, medical facilities, and government agencies.
Edison Partners has financed and guided more than 200 private companies since 1986 including 24 healthcare technology companies. Noteworthy Healthcare IT exits include Premier Health Exchange (PHX), Dendrite, Cadient, Health Market Science, and Verilogue. Current Healthcare IT portfolio companies include Lincor, TrialScope, Signet Accel and Zelis Healthcare.
VirtualHealth provides the leading platform purpose-built for integrated value-based care. Winner of the 2017 Frost & Sullivan Product Leadership Award, VirtualHealth offers a vast range of technology capabilities to payer and provider markets, including person-centered care/case management, disease management, utilization management, interdisciplinary collaborative workflows, broad spectrum interoperability, patient engagement, and configurable analytics and reporting. VirtualHealth empowers healthcare organizations to achieve enhanced outcomes while maximizing efficiency, improving transparency, and lowering costs. VirtualHealth is a member of Healthcare Information and Management Systems Society (HIMSS) and America's Health Insurance Plans (AHIP) and an invited member of Healthcare Executive Group (HCEG). For more information, please visit www.VirtualHealth.com.
ABOUT EDISON PARTNERS
For more than 30 years, Edison Partners has been helping CEOs and their executive teams navigate the entrepreneurial journey and build successful companies. Through the unique combination of growth capital and the Edison Edge platform, consisting of operating leverage, the Edison Director Network, and executive education, Edison employs a holistic approach to accelerating growth and creating value for businesses ($5 to $20 million in revenue) in financial, healthcare, enterprise and marketing technology sectors. Edison investment objectives also include: buyouts, recapitalizations, spinouts and secondary stock purchases. Edison’s active portfolio has created aggregate market value exceeding $10 billion. Its long-tenured team based in Princeton, NJ manages more than $1 billion in assets throughout the eastern United States.