The experience of waiting in line at your chaotic, paper-strewn doctor’s office may be a thing of the past.
Hello Health, the electronic health record provider popular with independent and local physicians, has pulled in $11.5 million in venture funding.
Around the world, doctors are shifting from paper documentation to electronic medical records. “The practice of medicine hasn’t changed much for me over my career. The business has,” said Hello Health user Dr Richard Goldberg, a New York-based family practice physician.
When Dr. Goldberg opted to get “computerized and have everything run smoothly,” he was won over by Hello Health, which wouldn’t require his practice to pay any up-front fees. In fact, the company claimed that in the long term, it wouldn’t cost him anything at all.
Hello Health works a little differently than most ERP providers. Doctors do not pay for the service; patients do. In fact, medical practices might even make extra cash by charging patients to access Hello Health’s services (like secure instant messaging). Hello Health charges patients around $5 per month for its opt-in services; the startup makes money by taking a cut, and the rest is given back to the doctors.
Electronic health record (EHR) software is particularly appealing for doctors as it reduces the time that is typically spent on paperwork, and makes them more available to patients. Hello Health, a New York-based subsidiary of Myca Health in Quebec, Canada, also offers billing and accounting software and a secure system for prescription requests to be processed online.
To succeed, Hello Health will compete with companies like Practice Fusion, which also offers scheduling, charting, and billing online services and which makes money through advertising rather than fees.
“Independent physicians are beginning to test alternative business models,” said Ian Ihnatowycz, president and chief executive officer of First Generation Capital, in a statement. “Research estimates one in three independent physicians will aim for higher yields by adopting subscription-based care models, and this trend will increase 100 percent annually for the next three years.”
Hello Health has pulled in a total of $21.5 million in VC money in the previous year. This round of funding was led by First Generation Capital.
Healthcare and the cloud is a major topic of discussion at CloudBeat. A panel of experts will gather to debate ways to improve security for cloud-based systems, and how digital services can bring benefits to both doctors and patients. Read more here about breaches of patient’s health records.