Advocate Aurora Enterprises Leads Funding Round for Xealth
Xealth, a Seattle-based company that enables digital therapeutic app deployment for many large health systems, has received an additional $24 million in Series B funding led by Advocate Aurora Enterprises, a subsidiary of Advocate Aurora Enterprises.
Seven additional health systems – Banner Health, ChristianaCare, Cone Health, Memorial Hermann, Nebraska Medicine, Novant Health and Stanford Health Care – join existing health system investors Atrium Health, Cleveland Clinic, Froedtert & MCW Health Network, MemorialCare Innovation Fund, Providence and UPMC. This brings the company’s total funding to date to $52.6 million.
The Health Management Academy, which brings leading health systems and industry partners together to address the industry’s biggest opportunities, helped initiate this round. Together with its members, the Academy identified Xealth as a pivotal digital health solution, creating a network effect that would benefit multiple members.
Funding from this round will fuel growth of the company’s team, approximately doubling its size. It will also support product innovation, including further enhancing its intelligence engine to better help health systems determine which tools are working best with which patients, further enabling the scale of Xealth’s deployment across the US.
Xealth pointed to a recent Juniper Research study predicting that the number of people using digital therapeutics and wellness apps will grow from 627 million in 2020 to more than 1.4 billion in 2025.
Integrated with electronic health records (EHRs), Xealth says its platform supports care teams to personalize digital solution ordering with one click and helps to elevate the patient experience.
Spun out from Providence in 2017, Xealth has backing from 14 health systems and full integrations with the largest EHR vendors. Additional investors include Cerner, LRV Health, Threshold Ventures, McKesson Ventures, Novartis, Philips, and ResMed. “Think of us as the Surescripts for digital health,” said CEO Mike McSherry in a January interview with Healthcare Innovation.
Xealth works with many of the largest integrated delivery networks in the country, including Mass General Brigham, Atrium Health, Duke, Baylor Scott White, Providence, UPMC, Cleveland Clinic, and Advocate-Aurora. “Cerner also invested in us and they are reselling us to their customers. Banner is the first, and several others are under contract,” McSherry said in January.
“We manage the digital health formulary for 40 different vendors on behalf of hospital systems,” McSherry said. Through APIs, the platform is tightly integrated with the app vendor’s solutions and the health system’s EHR. (Xealth only works in Epic and Cerner environments.) “Since everything is digital, we can track the patient’s usage and send that data back in the EHR for the clinicians to monitor or intervene if necessary."
“The future of healthcare is using innovative technology to help people take control of their health beyond traditional care settings,” Advocate Aurora Enterprises President Scott Powder in a statement. “That’s why we invested in Xealth. The company’s focus on connecting a broad array of health solutions to the consumer aligns with ours, as we seek to invest in industry pioneers who are helping people live well at all stages of life.”
“The support from leading health systems, including Advocate Aurora, as well as The Health Management Academy, validates our approach to incorporating digital health in ways that empower both providers and patients and will elevate our growth, taking our technology vision to the next level and creating a personalized care experience that deepens the connection between patients and clinical care teams,” McSherry said in a statement.
