DexCare Announces $20 Million in Oversubscribed Series a Funding, the Providence Spin Out Delivers First Operating System for Digital Care
New Company Launched by Healthcare Startup Veterans Derek Streat and Sean O’Connor; Backed by Define Ventures, Frist Cressey Ventures, Kaiser Permanente Ventures, Springrock Ventures and Providence Ventures
Today DexCare, Inc., a newly formed digital health company, announced a $20M investment led by Define Ventures and including Frist Cressey Ventures, Kaiser Permanente Ventures, SpringRock Ventures and Providence Ventures.
DexCare, a Platform-as-a-Service (PaaS), is an intelligent digital care operating system that manages health system capacity and demand across all lines of care. It has secured half a dozen customers, including Community Health Network, the Froedtert and the Medical College of Wisconsin health network, Houston Methodist, and Providence. Concurrent with funding, DexCare has been spun out as a separate company after being incubated at Providence within its Digital Innovation Group.
DexCare was developed by Providence, one of the largest and most digitally-advanced health systems in the United States. Initially developed as the platform for Providence’s ambulatory care business, DexCare has been driving patient acquisition, navigation and capacity optimization for the organization since 2016.
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“DexCare was instrumental as we transformed our ambulatory care model to better meet the needs of patients over the past few years. In 2020, scalability of the DexCare platform was instrumental in our response to COVID,” said Rod Hochman, M.D., president and CEO, Providence. “We’re proud that this internally developed and incubated technology is now ready to be made available to other health systems—furthering the Providence vision of health for a better world.”
DexCare enables health systems to evolve their traditional, one-to-one, patient-to-provider relationships and transform into a highly scalable digital experience for their patients— increasing revenue from new, digital-first patients while minimizing new patient acquisition costs. DexCare has delivered to Providence a new stream of digitally-enabled patients, of which 30% are new to the system and 73% are commercially insured.
“We’re thrilled to see the incredible support for DexCare—from consumers, health systems and investors. Never before have consumers been faced with so many options for digitally-enabled care as health systems have invested in their digital capabilities in the wake of COVID-19. At the same time, the rise in the number of point solutions has led to significant increase in complexity among the myriad offerings, as well as confusion for consumers. The need could not be greater for a rich platform that unifies consumer demand, health system resources and applications to make digital care truly work for all consumers and health systems,” said Derek Streat, co-founder and CEO of DexCare.
Virtual care has always been a key strategy to ensure we are delivering the best care to our patients,” said Dr. Sarah Pletcher, Vice President and Executive Medical Director of Virtual Care at Houston Methodist. “Like many hospital systems, COVID triggered an increased demand for virtual care offerings, but not every health system can offer the service and coordination and orchestration of primary and specialty care the way that we do. So, for us, our virtual infrastructure had to facilitate that richness. DexCare offers us a “wrapper” that pulls patients and consumers into our environment with ease.”
DexCare will be run by health technology veterans Derek Streat and Sean O’Connor, who have been working inside Providence as entrepreneurs-in-residence for close to a year. Lynne Chou O’Keefe, Founder and Managing Partner of Define Ventures and Aaron Martin, Executive Vice President and Chief Digital Officer of Providence will join Streat on DexCare’s Board of Directors.
“At Define we intentionally seek out companies leading the consumerization of healthcare because we believe in its transformative impact,” said Lynne Chou O’Keefe, founder and managing partner of Define Ventures. “DexCare’s unique solution to make digitally-enabled care more discoverable and actionable for consumers, while at the same time making it effective for health systems, is the kind of solution that will lead to a better healthcare system for everyone.”
Dexcare is the third technology incubated by the Providence Digital Innovation Group. The first was Xealth which enables clinicians to prescribe and monitor digital health content, apps and services as easily as they do medications or orders today. Xealth was spun out of Providence in 2017. The second was Circle, a women’s health technology company, that was sold to Wildflower Health in 2018.
“We’re very proud to see our third incubation effort enter the market under the leadership of two tremendously talented executives, Derek and Sean, and with the backing of such strong investment partners”, said Aaron Martin, EVP and chief digital officer at Providence. “DexCare has been a great example of how Providence’s Digital Innovation Group has been ‘disrupting from the inside’, and we’re excited to be able to share what we’ve developed with the industry.”
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