Healthcare IT Investors See Opportunity in Transition from On-premise to Web-based Solutions

November 20, 2010

At OpenView Venture Partners, we just closed our second healthcare IT investment for 2010 this past week. We announced our minority investment in Prognosis Health Information Systems, Inc., a leading provider of healthcare information technology to rural and community hospitals. Prognosis is a leader in a trend we are beginning to see surface across the healthcare space: transition from legacy, on-premise solutions to web-based products offered as a service. Cost concerns and technological obsolescence are forcing hospital administrators and providers to look to less capital-intensive solutions.

As a firm, we are starting to see this trend emerge among a number of sub-sectors across the healthcare spectrum. We invested in Kareo in September, a web-based practice management system that employs an intuitive user interface and robust claims processing capabilities to allow physicians/healthcare providers to easily receive payment. Kareo is coming in and replacing on-premise solutions from the ’90s that lacked integration capabilities and flexibility.

As venture capital investors with a focus on competitive positioning, these types of trends are especially compelling. What other sub-sectors in healthcare IT do you see undergoing the same type of change?

Chief of Staff/Director

Daniel was an Associate at OpenView Venture Partners where he took part in the investments in uSamp, Kareo, Prognosis Health, Mashery, NextDocs and Xtium. Currently, Daniel is Chief-of-Staff/Financial Strategy Director at <a href="https://www.anthem.com/">Anthem</a>.