Advocate Aurora’s venture arm raises $24M for digital health platform
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Advocate Aurora Enterprises has helped raise $24 million to grow Xealth, a digital health platform aimed at improving health outcomes through greater connections between clinicians and patients.
Banner Health, ChristianaCare, Cone Health, Memorial Hermann, Nebraska Medicine, Novant Health and Stanford Health Care were among the 14 health systems who participated in the Series B funding round.
“What Xealth is doing, is organizing an exploding ecosystem of digital and consumer health products, services and digital applications and making it easy for a provider to prescribe that to a patient,” said Scott Powder, president of Advocate Aurora Enterprises.
Xealth uses dozens of apps, services and devices to help clinicians facilitate remote patient monitoring, access digital therapeutics, and share information through electronic health records. The company claims to decrease the cost of integrating and deploying digital tools by 50-80%.
Xealth has raised $52.6 million to date. It has 20 of the country’s largest hospitals as customers, and is available to more than 100,000 physicians nationwide.
Stemming from Providence in 2017, Xealth also has backing from large electronic health record vendors and investors including Cerner, LRV Health, Threshold Ventures, McKesson Ventures, Novartis, Philips, ResMed, Atrium Health, Cleveland Clinic, Providence, UPMC, Froedtert & MCW Health Network, and MemorialCare.
“We want to be the default platform for digital health,” said Mike McSherry, CEO and co-founder of Xealth. “Funding will build out analytic capability, hiring customer teams to support new customer onboarding, and platform development for more scale and an automation of integration and delivery of these different digital assets to patients.”
Advocate Aurora Enterprises is creating a portfolio of innovative consumer health companies and is invested in scaling solutions with proven impact, Powder said.
Still, patients and providers tend to disagree on the future role of digital healthcare tools, as consumers grow more comfortable with virtual services and clinicians anticipate more in-person care.
Xealth gauges how well each digital tool performs with patients to personalize digital solutions.
During the first half of 2021, digital health companies raised a record $14.9 billion as investors continue to pour money into consumer-focused telehealth ventures.