Advocate Aurora Health’s investment subsidiary led a $24 million Series-B funding round for Xealth Inc., a Seattle company with a digital health platform.
Seven other health care systems joined Xealth’s investment group. They are: Banner Health, ChristianaCare, Cone Health, Memorial Hermann, Nebraska Medicine, Novant Health and Stanford Health Care.
Xealth’s existing investors are Froedtert & MCW Health Network of Wauwatosa, Atrium Health, Cleveland Clinic, MemorialCare Innovation Fund, Providence and UPMC.
Xealth said the new investors bring the company’s total funding to date to $52.6 million.
Spun out from Providence in 2017, Xealth has full integrations with the largest electronic health records vendors. The company’s digital health platform is available to over 100,000 physicians and brings digital health into clinicians’ workflow.
The platform supports care teams to personalize digital solution ordering with one click, Xealth said.
Funding from this round will fuel growth of the company’s team, approximately doubling its size. It will also support product innovation, the company said.
“The future of health care is using innovative technology to help people take control of their health beyond traditional care settings,” Scott Powder, president of Advocate Aurora Enterprises, said in a press release. “That’s why we invested in Xealth. The company’s focus on connecting a broad array of health solutions to the consumer aligns with ours, as we seek to invest in industry pioneers who are helping people live well at all stages of life.”
Advocate Aurora Enterprises was established this year by Advocate Aurora Health, which has co-headquarters in Milwaukee and suburban Chicago, to invest in businesses that enable people to improve their health and well-being beyond traditional clinical care settings.
The Xealth platform delivers centralized integration, prescribing, monitoring and governance for digital health tools from current clinician workflow. The company said it has demonstrated a 50% to 80% reduction in integration and deployment costs, and substantial patient engagement with digital assets.
The Health Management Academy, which brings leading health systems and industry partners together to address the industry’s biggest opportunities, helped initiate this round.
“Digital health use is accelerating and can be a key driver of growth for hospital systems,” said Mike McSherry, CEO and co-founder of Xealth. “The support from leading health systems, including Advocate Aurora, as well as The Health Management Academy, validates our approach to incorporating digital health in ways that empower both providers and patients and will elevate our growth, taking our technology vision to the next level and creating a personalized care experience that deepens the connection between patients and clinical care teams.”
