Medallion, a digital health startup that automates administrative tasks like clinician licensing and insurance network compliance, raised $30 million in its series B funding round, the company announced this week.
Medallion's platform, among other offerings, notifies providers if a particular license is about to expire and allows providers to manage licenses in multiple states, which particularly helps extend telehealth services to out-of-state patients.
The startup has nearly 100 clients, including Ro, Ginger and Curai Health, and has tripled its team to 90 employees this year alone.
Founded in March 2020, the company has raised $50 million to date.
“Healthcare is undergoing a digital transformation and we’re proud to power this new wave of companies from across the industry. From personalized opioid addiction medication to eating disorder treatment, we’re excited to empower these new methods of delivering patient care,” the company said in a blog post announcing the round.
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Sequoia Capital led the series B round, along with previous investors Optum Ventures, Spark Capital, Color founder Elad Gil and Cue co-founder Daniel Gross, among others.
The startup also announced new angel investors, including Mario Schlosser, CEO of Oscar; Iyah Romm, CEO of Cityblock Health; and Will Gaybrick, CPO of Stripe.
The company estimates they’ve saved their clients over 100,000 hours in administrative tasks.
Medallion is CEO Derek Lo’s second company—he started building Py, a platform aimed at democratizing the hiring process in tech with skills-based assessments, in 2016 while getting his undergraduate degree at Yale. Py was acquired by career platform Hired in 2019.
Medallion launched at the kickoff of a digital health boom that picked up speed during the pandemic and exploded in 2021.
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According to a Rock Health report, $21.3 billion has gone to digital health companies in the first nine months of 2021 alone, dwarfing the $14.6 billion in deals for the entirety of 2020.
Many digital health companies tackling administrative woes in healthcare have gained traction during the surge. Just this week, Notable announced it had raised $100 million in its series B funding round to automate administrative tasks like documentation and billing.
The U.S. spent an estimated $950 billion on administrative healthcare costs in 2019, a figure that’s only expected to grow in the coming years.