Procured Health said Friday that it has raised $4 million in Series A funding. FCA Venture Partners led the round. Also, the company has named Jim Fitzgerald as an advisor and John Burch to its board. Fitzgerald is the former president of HealthTrust Purchasing Group and Burch is a managing partner of FCA Venture Partners. Based in Chicago, Procured Health is a producer of web-based solutions that streamline medical products evaluation and purchasing by healthcare providers.
NASHVILLE, TN │CHICAGO, IL – (March 21, 2014) – Procured Health, a leading developer of web-based solutions that drive efficiency and savings in the hospital supply chain, has announced a $4.0M Series A Investment Round led by FCA Venture Partners.
“In the face of revenue and reimbursement pressure, it is absolutely critical that hospitals gain control of their operating expenses. By providing hospitals with the means to be more effective purchasers of products and devices they use every day, we can materially reduce the cost of providing care to their patients and thereby improve access to care,” said Hani Elias, CEO of Procured Health. “FCA Venture Partners has demonstrated experience with and commitment to driving efficiency in healthcare, and we are thrilled to be partners with them in our pursuit.”
Procured’s solutions are designed to aggressively reduce medical product expenditures typically the second largest and fastest growing cost category for hospitals. Medical device manufacturers enjoy gross margins in excess of 70% across the industry, a clear sign of inflated prices. Exorbitant supply costs have driven prices for many procedures to such levels that patients have been forced to seek care outside of the US. However, progressive healthcare providers have demonstrated that effective product analysis and outcomes-driven sourcing can reduce costs by more than 30% across multiple service lines. Procured’s web-based solution enables hospital systems and caregivers to improve both clinical and financial performance by incorporating evidence into their procurement strategy, driving vendor competition where outcome differentiation is unproven, improving utilization and physician compliance, and leveraging scale.
Mr. Elias continued, “Additionally, we are very excited to add Jim Fitzgerald as an advisor to our company. His experience will be invaluable as we add new solutions to our portfolio to further reduce costs for hospitals.”
Mr. Fitzgerald is an FCA Advisory Board member and the founder and former President of HealthTrust Purchasing Group, one of the nation’s largest healthcare focused Group Purchasing Organizations.
He stated, “Procured’s software platform is one of the most useful and impactful solutions that I’ve seen in my supply chain career. It transforms the product analysis effort from an administrative function to a strategic asset, and every hospital in the country should be using their approach to product selection. Procured is contributing much needed innovation to hospital supply chain and the medical device industry.”
John Burch, Managing Partner of FCA Venture Partners, will also be joining Procured’s Board.
“We are very excited to work with the Procured Health team as they seek to leverage technology to make the product evaluation and procurement process faster, better, and cheaper for health systems,” he said. “The company made tremendous progress since launch, growing its client base and continually improving the functionality of the product offering. Procured Health is a great fit with FCA Venture Partners’ long-term growth strategy and we look forward to helping the company make an impact in this area of the healthcare industry.”
The investment comes from FCA Venture Partners fifth fund, FCA Venture Partners V, L.P. (“FCA V”), which has a focus on companies in the early stage to growth equity phase.
About Procured, Inc.
Procured is a leading developer of web-based solutions to improve evaluation and purchasing of medical products by progressive healthcare providers. Its innovative services include a comparative device-information platform and a product-evaluation workflow solution that leverage data science, market intelligence, and clinical insights to enable member to understand industry dynamics, identify competition, discover opportunities, and accelerate decision-making and implementation. Procured is based out of Chicago, IL. For more information, visit www.procuredhealth.com.
About FCA Venture Partners
FCA Venture Partners, the venture capital manager of Clayton Associates, was founded in 1996 by R. Clayton McWhorter, founder of HealthTrust, Inc. and former chairman of Hospital Corporation of America (NYSE:HCA), and Stuart C. McWhorter, President and Chairman, to serve as a platform for investing in transformational healthcare and technology related strategies. FCA Venture Partners fifth fund, FCA V, is focused on healthcare services and information technology businesses in early to growth stages with disruptive, scalable business models, led by strong management teams with sector specific expertise. FCA and its affiliates have invested $175 million in over 85 companies to date, resulting in more than $7 billion in annualized revenue. For more information, visit www.claytonassociates.com.