The Chicago company gets a Series A investment from FCA Venture Partners. The company helps hospitals and caregivers save on medical products
“In the face of revenue and reimbursement pressure, it is absolutely critical that hospitals gain control of their operating expenses,” Hani Elias, CEO of Procured Health, said in a March 21 statement. “By providing hospitals with the means to be more effective purchasers of products and devices they use every day, we can materially reduce the cost of proianviding care to their patients and thereby improve access to care.”
Founded in 2012 by Egyptian entrepreneur Hani Elias, Procured Health reduces medical product expenditure, which it said is the second largest and fastest growing cost category for hospitals. Medical device manufacturers receive gross margins in excess of 70%, but companies like Procured Health can reduce costs by 30% by providing hospitals and caregivers information on procurement strategy and driving vendor competition. The company’s website says it streamlines value analysis, demystifies the device landscape, and proactively identifies savings.
Efficiency in healthcare
The company had previous receive $1.1 million in seed funding in August 2012 from Zimmerman Ventures, Bessemer Venture Partners, Fidelity Biosciences and Blueprint Health Accelerator.
“FCA Venture Partners has demonstrated experience with and commitment to driving efficiency in healthcare, and we are thrilled to be partners with them in our pursuit,” Elias continued in the statement.
FCA Venture Partners is the VC manager of Clayton Associates. It was founded in 1996 by R. Clayton McWhorter, the founder of HealthTrust Inc. and the former chairman of Hospital Corporation of America; and by Stuart C. McWhorter. FCA invests in transformational healthcare and technology companies in early growth stages. FCA has invested more than $175 million in 85 companies, resulting in $7 billion in revenue.
Photo credit: Shutterstock, ultrasound machine