The U.S. spends about $4 trillion on healthcare annually, of which $1 trillion is spent on healthcare administration. As with many issues in healthcare, a lot of the executive work suppliers should do to handle their clinicians’ credentials is guide, paper-based, time-intensive and housed in disparate programs.
This drawback led to the founding of Medallion, a supplier administration platform that automates licensing, persevering with training monitoring, credentialing and compliance. On Thursday, the startup closed a $35 million Collection C funding spherical, bringing the entire quantity of capital it has raised to $85 million. The spherical was co-led by Spark Capital and new investor GV (previously Google Ventures), with participation from Salesforce Ventures, Sequoia Capital, Optum Ventures, BoxGroup and Elad Gil.
Derek Lo, an alum of this 12 months’s Forbes 30 Underneath 30 Healthcare listing, based Medallion in 2020 with the mission of lowering healthcare’s overhead spend on administration by automating the guide elements of the credentialing and persevering with training course of. Medallion’s platform permits healthcare organizations to get their suppliers licensed in new states, renew their present licenses, observe supplier progress towards persevering with training completion, enroll with insurance coverage and confirm a supplier’s credentials.
The San Francisco-based startup sells its software program to digital well being corporations, well being programs, supplier teams and payers. It now has greater than 200 prospects, starting from smaller organizations with 5-10 workers to organizations with greater than 1,000 workers. Medallion will even work with impartial doctor practices so long as they’ve 5 or extra suppliers, Lo stated.
With out automation software program, organizations should manually observe their suppliers’ license renewal dates, in addition to the states through which purposes are pending. Additionally they should handle all back-and forth communication with suppliers and state boards, which might add hours onto workers’s work schedules and trigger burnout.
“Medallion eliminates all of this work for our prospects and manages the whole course of end-to-end, even the communication with the state board and the supplier,” Lo stated. “It’s a really comparable course of for payer enrollments, too.”
Like every SaaS firm, Medallion sells its expertise with a platform payment. It additionally presents further bundles for licensing, payer enrollment and credentialing. A number of the prospects utilizing Medallion’s platform embrace Headspace Well being, Oak Avenue Well being, Carbon Well being, MedExpress, hims, Tia and Longevity Well being Plan of Florida.
The startup’s rivals embrace symplr, Availity and MedTrainer. Lo declared that Medallion is completely different from these corporations as a result of no different platform is complete sufficient to supply an all-in-one platform — his firm’s software program can handle every part from licensing and persevering with training to credentialing and payer enrollment.
Medallion’s funding spherical comes amid speedy progress — simply six months after its Collection B and twelve months after its Collection A. The corporate has additionally practically doubled its worker rely to 150 since its Collection B.
The brand new funding might be used to “double down” on Medallion’s efforts to broaden the range of its buyer base, as digital well being corporations at present comprise the bulk. The corporate is trying to deliver on extra well being system and payer prospects, in keeping with Lo. He stated the cash will even be used to speed up product improvement and broaden its strategic partnerships.
The Collection C funding takes Medallion’s post-money valuation to $350 million, up from $200 million after the final spherical.
Photograph: elenabs, Getty Pictures
