Xealth lands $11M funding round from investors Novartis, ResMed and Philips

EHR
Xealth enables clinicians to prescribe patients digital health tools, such as apps, connected medical devices and nonclinical services like food delivery, from the EHR. (Rostislav_Sedlacek/Getty)

Digital health startup Xealth has raised $11 million in a series A financing round and has attracted investment from a who's who of investors including Novartis, a digital therapeutics company, and medical device companies Philips and ResMed.

McKesson Ventures also participated in the funding round, as did existing investors Threshold Ventures, Providence Ventures, UPMC, and Froedtert & the Medical College of Wisconsin Health Network.

McKesson Ventures sees Xealth as a player in the emerging "digital supply chain" that makes it possible to prescribe and monitor digital therapies and makes the associated data streams actionable, according to a press release.

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Originally incubated and launched at Providence St. Joseph Health in 2017, Xealth is a digital prescribing platform that enables clinicians to prescribe patients digital health tools—apps, connected medical devices and nonclinical services like food delivery—from their electronic health records. 

The investment will fuel the expansion of Xealth's platform, the company said.

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Mike McSherry, chief executive officer of Xealth, refers to the platform as a “digital formulary.” It helps to bridge the existing drug and healthcare products supply chain with the digital, which opens up a new set of digitally based treatment options that either stand alone or are in combination with traditional therapies, the company said.

“With these new partners joining our existing investors and customers, Xealth will be serving virtually every sector of the healthcare industry—providers, payers, pharma, devices, and supply chain,” McSherry said.  

Xealth has raised $19.5 million to date, including $8.5 million in 2017.

The company already works with UPMC, the Froedtert & the Medical College of Wisconsin health network, Baylor Scott & White, Duke and other health systems. More than 30 digital health solutions and over a million patient interactions are being prescribed and monitored by these partners to connect patients with educational content, transportation, meal delivery, e-commerce product recommendations and other services needed to improve health outcomes. 

ResMed, which provides connected health solutions such as sleep apnea therapy, worked with Xealth at Providence to help care for the 40,000 Providence patients who are using continuous positive airway pressure machines.

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The startup also announced a partnership this week with Froedtert & the Medical College of Wisconsin and digital medicine company Proteus Digital Health to integrate digital medicine data directly into patients’ EHRs. Through this partnership, Froedtert patients with hepatitis C, Type 2 diabetes or hypertension can be prescribed Proteus digital medicines, which include ingestible sensors and a wearable sensor patch to track medication-taking behavior. Once patients are using the digital medicines, the data generated is automatically integrated with the EHR through Xealth, the organization said.

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