Clareto Closes Series A Financing

The funding round will fuel expansion of Clareto’s health data
network, drive adoption by the life insurance industry, and extend
healthcare interoperability to modernize underwriting

RICHMOND, Va.–(BUSINESS WIRE)–MedVirginia, Inc., doing business as Clareto and a pioneer in health
information exchange, has announced the closing of a Series A financing
led by Health Catalyst Capital Management, LLC (“HCC”).

The combination digital health and insurtech company enables life
insurers to participate in standards-based exchange of electronic health
data – subject to patient consent via HIPAA-compliant authorizations –
with the goal of transforming the outdated underwriting process. This
funding round will enable Clareto to accelerate growth of its
proprietary health data network to a national scale, comprising public
and private health information exchanges (HIEs), provider organizations,
technology vendors, and other sources.

“Today, nearly half of American households lack adequate life insurance.
And while there are more opportunities than ever before to shop for
coverage online and apply electronically, consumers may still be
confronted with an arduous underwriting process or algorithms that
evaluate risk based on credit scores, geolocation data, and other
factors that are potentially discriminatory,” said Dave Dorans, CEO of
Clareto. “Electronic health data, however, provides an attractive
alternative to tried and true underwriting requirements, such as
requesting traditional medical records via fax and mail, and performing
intrusive medical exams and laboratory tests. In the long-term, we
expect this data to revolutionize underwriting as we know it,
simplifying the path for consumers to access the financial protection
their families need via the experience and efficiency they expect from
the digital economy.”

Clareto also operates MedVirginia, a federated HIE offering query-based
document exchange and results routing services to participating
healthcare providers throughout Virginia and beyond. In 2009,
MedVirginia became the first HIE to connect with eHealth Exchange – the
nation’s largest health information network covering four federal
agencies, 75% of hospitals, 59 state and regional HIEs, and thousands of
physician practices, pharmacies, and dialysis centers – and the Social
Security Administration’s (“SSA”) Health IT program for expediting
disability determinations.

HCC invests in multiple-stages of high-growth healthcare IT and
tech-enabled services companies.

“Clareto is reshaping the life insurance process by bringing much needed
innovation to one of the most regulated and stationary industries in
existence,” said Charles Boorady, Founding Managing Director of HCC.
“Using data and technology to turn a frustrating process into a seamless
user experience, Clareto is breaking down the barriers for obtaining
financial protection. We’re proud to be part of the team that is working
to improve the lives of millions of American families and shaking up a
massive industry.”

Clareto received early investment backing from NRV, a Virginia-based
venture capital firm. Bob Mooney, Managing Director at NRV and Clareto
board member noted, “HCC’s investment in Clareto confirms the continued
convergence of healthcare and insurance technologies, specifically the
role that data science plays in both sectors. We are delighted to have
HCC join the growing list of healthcare venture firms finding investment
opportunities in Richmond’s ecosystem and look forward to partnering
with them going forward.”

About Clareto
MedVirginia, Inc., doing business as Clareto,
has been a long-time innovator in the field of health information
exchange. Today, the combination digital health and insurtech company is
translating its unique history and experience in healthcare
interoperability to commercialize novel use cases and pursue emerging
market opportunities, with an initial focus on modernizing life
insurance underwriting. Based in Richmond, Virginia, Clareto is led by a
multi-disciplinary management team with deep expertise in the healthcare
and insurance sectors. For more information about Clareto, please visit http://clareto.com/.

About Health Catalyst Capital
Health Catalyst Capital
(“HCC”) is an independent private equity firm that invests primarily in
venture to growth stage healthcare information technology and
technology-enabled services businesses including artificial
intelligence, genomic data analytics and informatics. HCC was formed by
a team of experienced healthcare investors and operators seeking
profitable investment opportunities, while at the same time seeking to
improve the human condition and promote value-based care. Health
Catalyst Capital, L.P. invested in Clareto as part of its systematic
review of companies developing technologies related to Interoperability.

HCC seeks investment opportunities primarily in the investment themes
related to Genomics / Personalized Medicine, Patient Navigation,
Referral Management, Value-based Care, Interoperability and Aging in
Place.

Contacts

Dave Dorans
info@clareto.com
(804)
256-3600

error: Content is protected !!