Outcome Health, a decade-old healthtech company that's bootstrapped since its beginnings, raised its first ever round of funding today at a valuation of more than $5 billion pre-money.
The Chicago-based company creates technology for healthcare providers to help educate patients with actionable health information at point of care. This is done through digital and interactive experiences displayed on tablets and screens in waiting and exam rooms.
Reports on the exact amount of funding raised by the company vary. Bloomberg and Business Insider are reporting that the company has raised $500 million. According to figures reported by Forbes and the Wall Street Journal, the company is expecting the deal to close in a few weeks to the tune of $600 million.
Outcome Health expanded to New York City in 2014, where it has built out an extensive team in order to be closer to its pharmaceutical clients.
Outcome Health’s investors include Goldman Sachs Investment partners, Alphabet’s CapitalG, Leerink Transformation Partners, Pritzker Group Venture Capital and Balyasny Asset Management, as well as a number of health systems and other players in the healthcare industry.
"Outcome Health and its investors share a commitment to activate the best health outcome possible for every person in the world," said CEO Rishi Shah in a statement. "We believe achieving this at scale will require building a ubiquitous network that brings together all sides of healthcare to support patients and healthcare providers whenever, wherever and however they make critical healthcare decisions. We are grateful to have been entrusted to realize this vision by so many important stakeholders. Together, we have the opportunity to create the exam room of the future, physically and digitally, and evolve healthcare decision making from the currency of information to the currency of intelligence."
Formerly known as ContextMedia, Outcome Health was founded in 2006 while Shah and co-founder Shradha Agarwal were students at Northwestern University.
Outcome Health’s software is free for healthcare providers and funded by companies like insurance providers and pharmaceutical companies, which receive aggregated anonymized data in return, according to Bloomberg.
That model appears to be working. According to Crain’s Chicago, Outcome Health’s annual revenue has doubled for two years in a row, surpassing $130 million last year, and the company is operating with a profit margin of close to 40 percent — all before the company raised a single round of outside funding.
With its technology currently present in 20 percent of U.S. physician practices, Outcome Health said the funding will help the company reach 70 percent of practices by 2020. The company will also be seeking growth in new sectors of the healthcare industry, including pharmacies and clinical trials, as well as through international expansion.
Outcome Health has more than 150 open positions between its New York office and its Chicago headquarters. The company’s growth going forward will largely center around building out its engineering and product teams in both cities.
“The combination of our mission, world-class leadership and transformative role in healthcare has quickly shaped Outcome Health into a destination workplace for top talent,” said Chief People Officer Madan Nagaldinne. “With an employee-centric culture that emphasizes humble invincibility and the ambition to serve boldly, we can continue to attract talented individuals who are passionate about bringing the best health outcome possible to every person in the world.”
Image via Outcome Health. Additional reporting by Taylor Majewski.
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