Enterprise analytics company Clarify Health has secured $115 million in series C funding to scale its self-service healthcare analytics cloud and business software.
Clarify Health combines longitudinal data for more than 300 million “unique patient lives” from government and commercial claims, electronic health records (EHRs) and prescriptions, according to the company. These data can help healthcare professionals manage population health and commercialize pharmaceutical and biotechnology products.
“By linking CMS claims data with commercial claims, EHR, prescription and socioeconomic data, our models are trained on large cohorts and a more complete picture of each patient’s longitudinal healthcare journey,” Clarify Health CEO Jean Drouin, M.D., told Fierce Healthcare.
The San Francisco-based company was launched in 2015 and has raised $178 million to date, according to Crunchbase.
Venture capital and private equity firm Insight Partners led the investment. Hilary Gosher, managing director at Insight Partners, says her firm decided to invest in Clarify because the software platform enables interoperability for data in the healthcare industry.
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“Data interoperability and analytics were two particular buckets that the team identified as ripe for near-term investment,” Gosher told Fierce Healthcare. “After doing extensive outside-in market work around this category, we identified Clarify to be the company best positioned to not only lead but really to define this emerging and quickly evolving category.”
Without data interoperability, the healthcare industry suffers from data silos, which bring improper care, higher costs and sicker patients, Gosher noted.
Insight Partners also noticed how Clarify’s analytics platform helps address critical gaps in care.
“Clarify can help make sure that populations across the risk spectrum are getting the care that they need, when they need it, by proactively identifying potential gaps in care and intervention opportunities,” Gosher said.
In addition, Gosher said Clarify had a clear return on investment, strong customer satisfaction and a growth-minded management team.
Spark Capital was another major investor in this latest round for Clarify. As the healthcare data analytics market grows rapidly, Clarify stands out among other solutions on the market, according to Will Reed, general partner at Spark Capital.
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“Its team and technology are changing how insights are generated and consumed across our healthcare system—lowering costs, increasing efficiency and improving outcomes in the process,” Reed said in a statement.
Clarify is focused on building a data platform for all of healthcare, and that requires investment in automation. Big data and analytics are valuable tools to help repair a lack of trust among payers, providers and life science companies, according to Drouin.
“By removing artificial barriers between stakeholders, Clarify creates a common language and single source of truth through which to understand and benchmark care performance and outcomes,” Drouin said.
Clarify’s technology provides key information to help providers incorporate social and behavioral data into their decision-making, according to Drouin.
“Using information that, for example, indicates whether an individual has access to a safety net or access to transportation helps providers and payers understand how they can best support and manage those population cohorts,” Drouin said.
Insight Partners has funded several digital health companies recently. Last month, national medical practice Eden Health reported that it had banked $60 million in series C funding to help the company scale its business nationwide. Meanwhile, modular device and telehealth company Tyto Care announced earlier this month that it had raised an additional $50 million in series D funding so it can expand its remote examination platform and introduce additional AI and machine learning features.
Going forward, healthcare organizations will use AI algorithms to focus on larger strategies and make important business decisions, according to Drouin.
“The ability to use algorithms like Clarify’s to surface areas of opportunity without an individual needing to manually run all of the individual permutations will be increasingly critical in our industry,” Drouin said. “By leveraging Clarify’s automated analytics in everyday work, its customers can increase their analyst productivity, freeing up time to focus on larger strategic questions and making critical business decisions far more rapidly.”
The ability for Clarify’s AI platform to mine vast amounts of information and sequence data that have traditionally been siloed and unstructured will position the company well and deliver a complete understanding of a patient’s healthcare journey, according to Gosher.
“As Clarify scales, the company is building powerful data assets that are lowering costs and increasing efficiency, something that more companies are likely to adopt in the future,” Gosher said.