Clinicient, a cloud-based solutions provider focused on the billion dollar-plus market for outpatient physical therapy and rehab services, raked in a $15 million C round led by Catalyst Investors of New York. The Portland, Oregon startup has raised $26 million to date.
Clinicient’s integrated solutions aggregate all the different components needed for customers — physical therapists — to run their payment and billing operations under one platform.
The company makes money by charging their clients, in this case physical therapists, percentages based on the total cost of individual patient treatments that can run from several thousand dollars to over $100,000, for example.
“We’ve put a bow on the revenue-based financial and clinical side and the revenue management cycle,” said Clinicient chairman and chief executive Rick Jung, a New York transplant with 25 years in the healthcare sector. He assumed the CEO position yesterday.
Jung said while competitors dot this specialized landscape, Clinicient stands out because its cloud based platform does so much: It processes, manages, and pays out money to doctors, physical therapists, and insurance companies while maintaining databases of clients and patients and their respective histories.
Competitors Jung mentioned include Kareo, an online medical billing processor, and Athenahealth, a cloud-based management startup specializing in electronic health records.
He labeled his competitors “horizontal” providers and Clinicient as “vertical.”
Jung is confident his software licensing model works.
“Instead of selling software, you sell the service,” Jung said.
The newly installed executive also touted Clinicient’s cloud platform for “minimizing the payment waiting time for physicians and physical therapists.”
And Clinicient is on to something. The decade-old company is now doing business with “thousands” of physicians and therapists in 45 states. It manages $1 billion in billing payments, Jung says.
Since Clinicient takes a percentage cut from each transaction, that may translate to significant revenue. But the enthusiastic Mr. Jung declined to specify what Clinicient’s revenues were.
“We are the, if not the only provider, in the rehab outpatient space,” Jung said.