OpenView Venture Partners announced its investment of $9.5M in Kareo, an Irvine-based SaaS business focused on offering small healthcare providers with an easy-to-use platform for practice management and medical billing. Kareo aims to accommodate a provider’s workflow and help them to get paid faster.
Kareo is just one example of emerging expansion stage companies in the healthcare IT space. Government incentives, relaxation of the Stark Laws, and a focus on compliance/audits have all resulted in a number of healthcare companies growing very quickly.
Kareo focuses on the ambulatory or outpatient segment of the market and the relationship between providers and payers (insurance companies). There are three core constituencies in the healthcare technology ecosystem:
Companies focus on different combinations of these stakeholders — some connecting providers and patients, some connecting payers and patients and so on.
This is only the beginning of the healthcare IT revolution and more venture capital investment in the sector is sure to come!