Cedar, a healthcare finance technology has now announced that it has secured $200 million in a Series D funding round.
The new funding round has secured the New York City-based company valuation to $3.2 billion and brought it to the total funding to $350 million.
The funding round was backed by Tiger Global Management and included the existing investors Andreessen Horowitz, Concord Health Partners, and Thrive Capital.
“We raised this significant Series D so that we can continue investing heavily in innovative technology to build out our full product roadmap, beyond our core financial engagement product — making the healthcare experience more personalized, transparent, and convenient,” said Florian Otto, co-founder, and CEO of Cedar, in an email.
The company’s flagship product uses HER, behavioral and demographic data to personalize the patient’s financial journey. It is established in the year 2016; the company as of now engages with more than 300000 patients a day.
Cedar, as of now, has plans to use the new funds to expand patient touchpoints and build out more patient engagement use cases, which includes the tools focused on price transparency and pre-visit functionalities.
“Cedar has emerged as the market-leading, a technology-enabled platform helping patients resolve their medical bills in ways that are easier and more relevant, resulting in improved financials for healthcare providers,” said Scott Shleifer, partner at Tiger Global Management, in a news release.
The healthcare financial experience is a common and also an endlessly frustrating patient pain point, and patients are even willing to change providers based on that experience. More than 50% of the 3000 healthcare consumers, as per the report and survey did by the RevSpring in the year 2019, revealed that a bad billing experience had inspired them to “shop around” for a new provider.
“Cedar knows that patients are more than a propensity-to-pay score or user persona, which is why we combine technology and human creativity to personalize the patient experience across the entire healthcare journey,” Otto said.
Apart from a focus on metrics like cash collections, Cedar has also created new ones such as resolution rate, which measures the share of the invoices fully resolved as opposed to dollars collected, and is even evaluated alongside patient satisfaction score.
“Our mission has always been to enable exceptional patient experiences and transform healthcare, which is becoming more and more relevant in today’s market,” he said.