PriorAuthNow, a company which uses software to automate the process of securing prior authorization for medical procedures, has closed a $10.5m Series A round.
Atlanta-based venture company BIP Capital led the round, which also saw participation from NCT Ventures and Dan Gilbert-backed Detroit Venture Partners.
The company will use the funding to advance its operating capabilities and expand its team, with an intention to double its staff over the course of 2018.
PriorAuthNow launched its software with large provider clients in various states in the US. At present, the company serves 39 hospitals and health systems with over 1,600 unique active users.
PriorAuthNow reduces the time needed for hospitals to connect with patients’ insurance providers to secure approvals for procedures, resulting in decreased cost and inefficiencies in the healthcare system.
The PriorAuthNow electronic prior authorization (ePA) solution allows healthcare providers and payers to leverage a single platform for submitting, monitoring and completing the prior authorization process.
The PriorAuthNow technology is claimed to reduce the manual time taken to acquire prior authorizations from days to hours.
The PriorAuthNow platform is allowing health systems to experience denial reductions greater than 60% associated to authorizations.
PriorAuthNow CEO Joe Anstine said: “This significant funding is a huge vote of confidence in our business and will fuel our next phase of growth.
“PriorAuthNow is building a powerful solution to a multi-billion-dollar problem in healthcare. By automating prior authorizations, we help our clients improve their business processes and reduce costs, resulting in more efficient and better patient care.
PriorAuthNow has reduced turnaround times of client authorizations by over 25% since the start of this year.
The company said it is experiencing considerable revenue growth in 2018 and expects to triple its revenue again in 2019.
PriorAuthNow earlier raised $3.6m in 2017 in a round led by NCT Ventures.