Health IT Firm Secures $14M to Usher Payers, Administrators Into “Healthcare’s Retail Future”

2 Min Read

Health Insurance Benefits section tab in folding file.

(This post was first published on MedCityNews)

Health Insurance Benefits section tab in folding file.

(This post was first published on MedCityNews)

New reimbursement models and the impending launch of state health insurance exchanges pose some new technical and administrative challenges to health plans. A company that’s building enterprise software solutions to help payers handle these and other big changes in how plans are managed has just raised $14 million to continue growing.

Healthation says that the new retail ecosystem requires healthcare administration to be increasingly real-time and interoperable. The company markets web-based solutions for emerging healthcare payers and administrators that include benefit plan management, financial management, transaction management, customer service and reporting and analytics.

The Lisle, Illinois-based company just disclosed in an SEC filing that it had raised a Series B. In an announcement, the company said the $14 million investment round was led by ABS Capital Partners, with participation from Hughes & Company and existing investors SilverStream Capital.

“With this new injection of capital we’ll be better able to provide what our customers need – and that ultimately means they can be more competitive in this shifting market,” CEO Darin LeGrange said in a company statement.

Founded in 2002, the company says it has 26 customers who are managed care payers, third party administrators and non-profit consumer-oriented plans. It also recently won contracts with three state-based health insurance marketplaces.

Other companies in this space include IBM, Plexis and Health Solutions Plus.

[Health benefits photo from BigStock Photos]

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