HealthEdge, a software company that develops and markets technology for healthcare payers, has received $13 million in venture capital. Company officials say they will use the money to improve their products and grow the business.
The investment comes from the Psilos Group, a healthcare venture capital and private equity firm founded in 1998. With more than $500 million under management, Psilos focuses its investments across the healthcare services, healthcare information technology, and medical technology sectors.
Burlington, Mass.-based HealthEdge provides HealthRules, a patented software platform for core administrative processes, business intelligence and Web self-service.
"We believe that HealthEdge's HealthRules is the only software platform that meets the needs of today's healthcare marketplace," said Albert Waxman, senior managing member of the Psilos Group.
Waxman said the legacy systems in use at most health plans today can't respond to the evolving consumer-focused healthcare economy, which demands support for personalized benefits and complex financial transaction management. HealthEdge is uniquely positioned to take advantage of this changing market, he said.
Rob Gillette, CEO of HealthEdge, said HealthEdge is seeing unprecedented demand for its products.
"The healthcare payer community has now realized that a contemporary software platform, built with the next generation of healthcare in mind, is no longer a luxury, but a necessity," he said.