A company offering Web-based billing management software for small physician practices is looking to boost business with a new infusion of cash.
Kareo, Inc., based in Irvine, Calif., announced on Monday the closing of an investment by Boston-based venture capital firm OpenView Venture Partners. Combined with an earlier stock purchase from another investor, the company has $9.5 million in hand, officials say, to expand its product suite, enhance customer service, build out sales and marketing initiatives and bolster its management team.
Company officials say Kareo fits into one of the fastest growing verticals in the country – healthcare IT spending. Faced with reduced insurance reimbursements, more patients and increased government regulation, small physician practices are looking to practice management and revenue cycle management systems to improve collections and reduce wasteful spending.
“Kareo is growing quickly because we offer a solution that makes it remarkably easy for physicians in small medical practices to run their business and get paid by insurance companies and patients,” said Dan Rodrigues, the company’s founder and CEO. “We're very excited to use the new investment from OpenView to further enhance our customers' experience, expand our product offering and bolster our management team in order to support our rapid growth.”
“Kareo is profitable, growing rapidly and offers a solution that hits the sweet spot for small medical offices,” added Adam Marcus, a principal at OpenView Venture Partners. “Providers want an easy-to-use product that significantly increases reimbursements while it dramatically cuts down on administrative costs. We are very bullish on Kareo’s ability to provide a simple, yet elegant solution that will capture a significant share of the small practice segment.”
Kareo provides subscription-based software designed to help physicians in small offices manage their operations and connect with insurers and patients. The company’s applications allow practices to schedule appointments, verify insurance eligibility, send claims and receive insurance payments, bill patients, manage accounts receivables, store documents and generate reports.
The company was founded in 2004 and dealt with third-party medical billing services until 2008, when it extended its services directly to small- and medium-sized physician practices. The company has also added a free electronic health record option through a co-marketing partnership with San Francisco-based Practice Fusion.