Artificial-intelligence-powered operations software startup Qventus has snagged a $50 million growth investment to roll out its tech in more hospitals and health systems.
The company offers its solution to providers to automate aspects of care operations like access and patient flow, decreasing length of stay spent in the hospital and freeing up space for more patients while reducing provider burden.
Qventus has partnered with hospitals and health systems like Boston Medical Center, HonorHealth, M Health Fairview, Mercy and Saint Luke’s Health System to deliver its solution for use in inpatient, perioperative, emergency department and command center environments.
“Our care operations automation software relieves some of the largest operational and financial pressures facing hospitals and health systems today,” said Mudit Garg, co-founder and CEO of Qventus, in a statement. “We are excited to partner with world-class investors who bring domain and operational expertise in scaling automation technology businesses. Our partnership with THL and Premier will enable us to expand our product vision, enhance our market presence and help care teams deliver world-class healthcare to patients across the country.”
Thomas H. Lee Partners led the round alongside healthcare improvement company Premier Inc., both of which will enter into strategic partnerships with Qventus as part of the investment.
Thedacare and existing investors Bessemer Venture Partners, Mayfield Fund and Norwest Venture Partners also joined the round.
Qventus said it eliminated more than 200 years of excess days in hospitals last year.
RELATED: Industry Voices—Addressing minimum disruption, process efficiency and customer satisfaction
“We are excited to partner with the Qventus team as they expand their position within the care operations automation market,” said Jeff Swenson, managing director at THL, and Kearney Shanahan, director at THL. “Qventus’ AI-enabled technology improves the patient experience, eases the burden and strain on healthcare professionals, and provides a clear and measurable return-on-investment to hospitals and health systems nationwide.”
The U.S. loses approximately $1 trillion each year due to healthcare waste, according to a 2019 JAMA review.
An October report co-authored by McKinsey and Harvard economics professor David M. Cutler, Ph.D., suggested the country could cut $265 billion from that total with a series of interventions to address excess administrative costs.
The authors found the bulk of those potential savings, around $175 billion, could be taken on by individual organizations without necessitating sweeping policy changes or regulatory action.
RELATED: U.S. healthcare could save $265B in administrative costs, McKinsey report finds
As more and more technologies automating operational and administrative processes in hospitals pop up, McKinsey Partner Nikhil R. Sahni urged organizations to consider making investments in interventions that could save them excess spending in the long term.
“These things require some upfront investment. You can’t pull away from that—you have to lean into that and make it happen,” he told Fierce Healthcare.