Inflation recently hit a 40-year high leaving consumers searching for ways to save money. Saving on medical expenses can help cushion the blow consumers feel purchasing other items. New York-based Capital Rx is one startup in the healthtech space that aims to do just that with its enterprise technology.
Capital Rx’s services help consumers and medical providers monitor medical billing and reimbursements. The platform also helps consumers save an average of 27 percent on prescription drug purchases, according to the company.
On Monday, Capital Rx pulled in a $106 million Series C round led by B Capital with participation from General Catalyst and others. This brings the startup’s total funding to date to $175 million.
With its fresh funds, Capital Rx is investing in its technology and product offerings to benefit medical administration by using its technology to improve operational efficiency and clinical management. This advancement will help modernize data exchange, prior authorization, client reporting, billing and reimbursement, member tools and more to improve the patient care experience.
“Our country cannot continue to operate on disparate and antiquated technology and our goal is to provide our nation the infrastructure it needs for the healthcare system we deserve,” AJ Loiacono, CEO of Capital Rx, said in a statement. “We’re thrilled to partner with B Capital and General Catalyst.”
Another startup in the space, GoodRx, has worked on a mission similar to Capital Rx’s since 2011. While Capital Rx has a focus on administrational advancement, both startups strive to lower the cost of prescription drugs.
GoodRx’s main product offering is a tool that tracks the cost of prescription drugs and provides discounts to users, along with providing prescriptions through telehealth services. To date, GoodRx has raised $910.3 million in venture capital, according to Crunchbase data, meaning Capital Rx may have a promising funding future as well if funding trends in the space continue.
“Capital Rx has the clearest vision we’ve seen in the market for how to transform the infrastructure of healthcare to enable better care at a lower cost,” Dr. Robert Mittendorff, a general partner at B Capital, said in a statement. “AJ and team have made incredible progress in modernizing and unifying the operating platform for prescription drug pricing and delivery, showing industry partners, employers and American consumers that a new level of care delivery and patient experience is possible for prescription drug access and pricing.”
In addition to raising capital, Capital Rx is actively hiring for more than a dozen positions.
