Digital health companies continue to bask in the glory of what has become one of the most lucrative sectors in healthcare. The latest example of this comes in the form of a merger between Relatient and Radix Health, as well as a $100+ million of additional growth equity capital from one of Relatient's existing investors, Brighton Park Capital.
The merger brings Relatient's patient engagement technology and Radix Health's data-driven patient scheduling platform together under one brand.
“Radix Health has built an innovative product and strong customer base, far beyond what else we have seen in the market for patient access and schedule optimization,” said Michele Perry, CEO of Relatient. “Together, we have a robust platform solution for a market looking to move beyond first-generation patient communication systems to drive greater value through interactions and ease of access to healthcare.”
The Radix platform uses machine learning to help U.S. healthcare providers deliver a frictionless patient experience through patient-provider matching, schedule optimization, referral automation, and patient self-service applications.
Brighton Park Capital’s investment provides Relatient the capital needed to further its already impressive growth trajectory as the healthcare industry continues to place emphasis on patient engagement via digital platforms. A survey by KLAS evaluating which patient engagement technologies have been most impactful to patients found arranging care and finding a provider were two of the top desires for patients, demonstrating the immediate need for seamless patient communication.
Relatient is an all-in-one platform for patient engagement and outreach founded in 2014. The platform helped Warren Clinic, an Oklahoma-based medical group, reduce its 10% no-show rate by 52% through patient messaging and custom automated appointment reminders.
Radix Health's scheduling solution helped Tennessee Orthopaedic Clinics boost capacity utilization by 3.4% while also improving load balancing among providers, yielding a return on investment of over $800,000.
Digital health funding shatters records
As MD+DI recently reported, digital health funding is higher than ever before.
Global venture capital (VC) funding for digital health companies in 1H 2021 shattered all previous first half funding records, with $15 billion. Funding activity was up by 138% during 1H 2021, compared to $6.3 billion raised in 1H 2020, according to a Mercom report.
Corporate funding into digital health companies, including VC, public market financing, and debt, totaled $19 billion in 1H 2021, according to the report.
In Q2 2021, digital health companies raised a record $7.7 billion in 195 deals, a 7% increase quarter-over-quarter compared to $7.2 billion raised in 179 deals in Q1 2021. Year-over-year funding was up by 175% compared to $2.8 billion in 161 deals in Q2 2020.