Redox, the Madison company that created a software interface used for electronic health record exchange between care providers, is in growth mode once again.
Following a $45 million capital raise, the company is preparing to grow and expand as more categories within digital health care come into play.
The Redox interface is used by product developers that are creating applications for exchanging patient data between various health care providers. More than 1,400 health care organizations use Redox for a multitude of digital health care applications, mainly to exchange and integrate 12 million patient records per day across 55 electronic health record vendors.
In the second quarter 2020, however, the company experienced a sharp decline in user activity for its interface, as health care systems quickly shifted their attention – and finances – to fighting the Covid-19 pandemic, said Luke Bonney, co-founder and CEO of Redox.
At the onset of the virus outbreak, traffic across the Redox platform divided in half, Bonney said.
"Procurement of health care technology was put on hold," he said.
Heading into the third quarter of 2020, though, there was concentration and rising demand for specific digital technology verticals from Redox, those being telemedicine, remote patient monitoring, diagnostic testing and automation. Redox witnessed what Bonney describes as an "incredible amount of growth and acceleration" in the aforementioned categories, namely the digitization of lab reporting and diagnostic testing.
"We saw something like five years worth of innovation happen in 2020," he said.
The situation forced company leaders to reorganize its structure to focus on areas of high demand. Unfortunately, that included laying off some workers. Prior to the pandemic, roughly 85% of the company was working remotely, allowing Redox to continue to work fairly uninterrupted at the onset of the pandemic.
Moving forward, Redox will use its newly-acquired capital to grow its core software business by investing in "new areas," research and development, and more talent. Over the next few months, Redox, which employs between 135 and 140 people working remotely across 32 states, will add talent in sales, product engineering and marketing, among other roles, Bonney said.
Founded in 2014, Redox has raised just over $95 million from investors.
In 2021, Redox will also build on its new partnerships with Amazon Web Services, or AWS, which is a leading infrastructure company for developers, and customer relationship management software company Salesforce. With AWS, the Redox interface is being listed on the AWS marketplace for developers looking to build apps for health care data exchange. The Salesforce relationship involves helping the San Francisco-based company integrate Health Cloud, its new patient management software, with care provider organizations that are using it, Bonney said.
"It was a tough year," Bonney said. "We had to make really important, really hard decisions but the company is better because of it and we did everything we could to treat the people impacted as well as we could. Redox is a more resilient, higher functioning company than we’ve ever been."
