Health tech company Innovaccer secured a $275 million series F funding round to invest in artificial intelligence with the goal of becoming a “one-stop shop” for healthcare AI solutions.
The company, founded in 2014, built software solutions that aggregate patient data across care settings and systems.
The series F round was a combination of primary and secondary, and includes participation from B Capital Group, Banner Health, Danaher Ventures LLC, Generation Investment Management, Kaiser Permanente and M12. The post-money valuation of the primary funding is approximately $3.45 billion, TechCrunch reported, citing sources familiar with the deal.
With the steady adoption of AI-based tools by healthcare organizations, Innovaccer plans to introduce multiple copilots and agents to its offerings, including utilization management, prior authorization, clinical decision support, clinical documentation, care management, and contact center.
The company will use the hefty $275 million investment to expand its collaboration with existing customers, introduce new AI and cloud capabilities and scale a developer ecosystem on the platform, executives said.
Innovaccer also plans to expand its capabilities through acquisitions, Abhinav Shashank, co-founder and CEO of Innovaccer, said in an interview.
The company is looking at key capabilities in areas such as revenue cycle, payer-provider collaboration, care management and utilization management, he said. "We're also starting to think about how can we accelerate research at some of the larger academic medical centers as well as life sciences companies as well," Shashank said.
Last year, the company acquired Cured, a digital marketing and CRM platform for healthcare. It also bought Pharmacy Quality Solutions (PQS), a pharmacy-payer performance technology.
Innovaccer has raised a total of $675 million from leading venture capital firms and strategic investors.
Innovaccer offers software solutions for value-based care programs, data management, population health, patient experience and to help reduce the administrative burden on providers.
Over the past two years, the company has significantly grown its customer base, now serving six of the top 10 health systems and growing its public sector partnerships with San Mateo County and Alameda County. Innovaccer’s platform now supports over 130 healthcare organizations.
The company reports 50% year-over-year revenue growth for the past five years and it generated positive cash flow in the fourth quarter of 2024, Shashank said.
The company has been building out its AI capabilities. It first unveiled an AI assistant, Sara, and other products at HIMSS 2023. That tool generates complex analytic insights about population health data via humanlike responses. It is powered by Innovaccer’s Data Activation Platform, which unifies patient data between disparate EHRs and across care settings to give providers access to the tools they need at the point of care.
A few months after the HIMSS announcement, Innovaccer expanded its offerings with Sara for Healthcare, a package expanding on the AI assistant. It included large language models targeting four different types of roles and aims to cut workloads, automate workflows, generate insights and support decision-making.
At the J.P. Morgan Health Care Conference last January, the company rolled out an AI assistant that transcribes, analyzes and summarizes conversations between providers and patients. Dubbed Sara Scribe, the tool is meant for appointments in ambulatory care settings. Integrating with most major EHRs, Sara Scribe prepares encounter notes and provides clinical insights into quality gaps, coding gaps and potential diagnoses for the clinician. The note is generated in real time, the company claims, and can be edited by clinicians before being submitted.
In April, Kaiser Permanente announced a partnership with Innovaccer to use its artificial intelligence platform and population health management solutions.
“Innovaccer has a vision for how data and AI can power the future of healthcare that aligns with the opportunities for AI we see at Danaher,” said Julie Sawyer Montgomery, executive vice president, at Danaher Corporation in a statement. “We see this investment as an opportunity to partner with Innovaccer and other industry leaders to tackle some of healthcare’s biggest challenges. We believe providing clinicians with the data and analytics to drive meaningful clinical insights, more quickly, at the point of need, we can accelerate the transition to more effective, more personalized care.”