Myca Health company Hello Health raised $11.5 million this week in a round led by First Generational Capital. Hello Health just raised $10 million raised in February, which brings the subsidiary's total funding in 2012 to $21.5 million. Hello Health said the money would be used for meeting increased demand for its free EHR system, notable for its patient-facing component, including a subscription portion that allows the system to generate revenue for practices. First Generation contributed $10 million, the vast majority of the round.
“Independent physicians are beginning to test alternative business models,” Ian Ihnatowycz, president and chief executive officer of First Generation, said in a statement. “Research estimates one in three independent physicians will aim for higher yields by adopting subscription-based care models, and this trend will increase 100 percent annually for the next three years.”
Hello Health is reaching out to those physicians with a web-based software suite that Fast Company once described as a "Facebook-like medical platform". As well as providing back-end support for practices, Hello Health includes patient communication tools like secure messaging, patient access to prescriptions and medical records, and video consultations enabled through the system. Some of those features are free to patients, but others are opt-in for a small fee (around $5). Hello Health, which is free for providers, makes its money by taking a cut of patient fees. Last year Myca disclosed that Apple was using the Hello Health platform in its on-site clinic in Cupertino and longtime Myca partner Qualcomm also leverages Hello Health at its workplace clinic.
The company said it would use the funding to seek out strategic partnerships and add more revenue opportunities for doctors using the platform.
In September Hello Health co-founder Dr. Jay Parkinson, who left the company in late 2010, raised $1.85 million for his new startup, Sherpaa, which is focused on helping startups and small companies navigate healthcare and health insurance for their employees.
