BIP Capital Leads Series A Funding of $10.5M for PriorAuthNow
Wednesday, May 16th, 2018
PriorAuthNow, a platform for connecting the healthcare landscape using prior authorization (ePA) automation, announced that it has raised a Series A funding round of $10.5 million led by BIP Capital.
PriorAuthNow reduces both the cost and inefficiencies in the healthcare system by decreasing the time required for hospitals to connect with patients' insurance providers to obtain approvals for procedures. Research published by Health Affairs estimates that the annual cost of prior authorization compliance is between $23 billion and $31 billion each year. Additionally, a 2016 survey of more than 300 health providers found that both physicians and support staff spend between five and eight hours a week on prior authorization-related processes.
"We're excited to partner with PriorAuthNow to transform the way the healthcare industry addresses prior authorizations," said Mark Buffington, CEO of BIP Capital. "PriorAuthNow CEO Joe Anstine has done a phenomenal job building a technology company with a sophisticated product that dramatically reduces inefficiencies in a traditionally time-consuming process."
"It's not easy to find a win-win solution in an industry as complex as healthcare technology, but through extensive customer research, we've been able to build something that delivers faster care at a lower price in a way that benefits patients, providers and insurance companies," said PriorAuthNow's Anstine. "We're thrilled to raise this next round of capital to fuel the growth of our company, bringing our product to all the different healthcare markets across the country."
The PriorAuthNow technology significantly reduces the manual time it takes to acquire prior authorizations from several days to a matter of hours, revolutionizing the entire revenue management cycle through its efficiency. With the PriorAuthNow platform, health systems have experienced denial reductions greater than 60 percent related to authorizations.
"PriorAuthNow is a disruptive technology platform that automates a manual process plaguing every health system and provider in the United States. It provides an immediate ROI for hospital executives looking for improved cash flow and revenue cycle," said Sarath Degala, vice president at BIP Capital, who led the PriorAuthNow deal.