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Kareo Secures $15 Million in Mezzanine Debt from Escalate Capital Partners

Latest investment brings total capital raised in 2014 to $47MM, new capital will be used to further expand Kareo’s cloud-based solutions for independent physicians

Irvine, CAOctober 24, 2014 Kareo, the leading provider of cloud-based medical office software for small medical practices, today announced that it has received $15 million in mezzanine debt from Escalate Capital Partners, an institutionally backed mezzanine fund that invests in high growth companies in the technology, healthcare and Software-as-a-Service (SaaS) industries. In 2014, Kareo has secured a total of $47 million in funding, reinforcing the company’s unprecedented growth and further enhancing Kareo’s role as the independent physician’s trusted partner.

Kareo enables independent physicians and their staff to streamline patient engagement, clinical documentation, billing, and other critical administrative processes in order to focus on what matters most—providing quality patient care. The $15 million in new growth capital will be used to further expand Kareo’s reach and deepen its solution set to meet inevitable demand due to patient-driven shifts in the industry, while accelerating the development and innovation of the company’s cloud-based technology.

“The shift toward consumer-driven care is continuing to gain momentum,” says Dan Rodrigues, founder and CEO of Kareo, “and we believe that independent practices are uniquely positioned to benefit from this trend and provide the most appropriate and highest quality care to patients. We are delighted to have the backing and confidence of Escalate as we further enhance our products to better support small practices.”

Kareo’s mission has been affirmed by its significant growth. The company has been consistently recognized as one of the fastest growing private companies in the U.S., realizing a 552 percent increase in revenue over the past three years. The company now serves more than 25,000 healthcare providers with its award-winning EHR, practice management and billing services platform, and is adding more than 500 provider customers per month.

“Kareo’s unique business model and market-leading solutions are changing the game in healthcare IT,” says Ross Cockrell, managing director at Escalate Capital Partners. “There is considerable market opportunity for Kareo as independent physicians provide the majority of patient care in the United States. And with increasing focus on fee-for-quality reimbursement models, this trend will likely continue. Kareo is well poised to sustain its growth record and we are excited to be a part of its continued success.”

The latest financing brings Kareo’s total capital raised to $90 million. New investor Escalate Capital Partners joins Kareo’s group of top-tier institutional investors which also include OpenView Venture Partners, Greenspring Associates, Stripes Group, Silicon Valley Bank and Western Technology Investments.

About Kareo

Kareo is the only cloud-based medical office software and services platform purpose-built for small practices. At Kareo, we believe that, with the right tools and support, small practices can do big things. We offer an integrated solution of products and services designed to help physicians get paid faster, run their business smarter, and provide better care. Our practice management softwarebilling services, and free, award-winning fully certified EHR help more than 25,000 medical providers more efficiently manage the business and clinical sides of their practice. Kareo has received extensive industry recognition, including the Deloitte Technology Fast 500, Inc. 500/5000, Forbes Top 100 Most Promising Companies, and Black Book #1 Integrated EHR, Practice Management and Billing Vendor. Headquartered in Irvine, California, the Kareo mission is to help providers spend their time focused on patients, not paperwork. For more information, visit www.kareo.com.

About Escalate Capital Partners

Escalate Capital Partners is an institutionally backed mezzanine fund that invests in high growth companies and is an ideal partner at the critical growth phase in a company’s lifecycle, offering patient capital tailored to each company’s unique needs. Escalate Capital has built a track record as a valued and committed partner through periods of robust growth and economic uncertainty. The Escalate Capital investment team has a combined 75+ years of experience and has invested more than $2 billion in over 500 companies.

October 24, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 13 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Kareo Secures $29.5 Million in Growth Capital

IRVINE, CA – January 21, 2014 – Kareo Inc., the leading provider of cloud-based medical office software and services for small medical practices, today announced it has secured $29.5 million in growth capital. This latest financing was led by Greenspring Associates and joined by OpenView Ventures and Silicon Valley Bank. This new capital will be used to invest in sales and marketing to accelerate growth, further enhance the company’s cloud-based software platform, and scale its revenue cycle management operations.

“We are thrilled to continue our successful partnership with investors Greenspring Associates and OpenView Ventures and welcome the new investment by Silicon Valley Bank,” said Dan Rodrigues, CEO and founder of Kareo. “This additional funding further validates our vision that Kareo’s cloud-based solutions can unleash the power of healthcare providers to deliver exceptional patient care while building thriving practices.”

“It’s been exciting to watch the impact that Kareo has had on small practices, including the recent launch of Kareo EHR and Billing Services,” said Jim Lim, partner at Greenspring Associates. “Given the company’s track record of rapid growth and market leadership, we jumped at the opportunity to deepen our partnership with Dan and his management team.”

Kareo’s latest funding follows a year of significant milestones and recognition within the healthcare technology industry, including:

  • The continued rapid growth of Kareo Practice Management, the company’s solution that serves more than 20,000 providers who processed over $6 billion in medical billing through Kareo’s platform last year.
  • The launch of Kareo EHR, the company’s free electronic health record solution that generated more than 5,000 sign-ups in less than ten months.
  • The introduction of Kareo’s technology-enabled revenue cycle management solution, Kareo Billing Services, which already manages billing for more than 1,000 providers across 46 specialties nationwide.
  • The successful acquisition and integration of Ecco Health, Kareo’s first acquisition, enabling the company to expand its services while deepening its revenue cycle management expertise across a wide range of specialties.
  • Extensive industry recognition, including the Deloitte Technology Fast 500, Inc. 500/5000, Forbes Top 100 Most Promising Companies, and Black Book #1 Integrated EHR, Practice Management and Billing Vendor.
  • Expansion of Kareo’s management team with the hiring of Tom Giannulli, MD as its Chief Medical Information Officer, Rob Pickell as its Chief Marketing Officer, Amyra Rand as its Vice President of Sales, David Mitzenmacher as its Vice President of Customer Success, and Nitin Somalwar as its Vice President of Engineering.

About Kareo

Kareo is the only cloud-based medical office software and services platform dedicated to small practices. At Kareo, we believe that, with the right tools and support, small practices can do big things. We offer an integrated suite of products and services designed to help physicians get paid faster, run their business smarter, and provide better care. Our Practice Management software, Billing Services, and free, full-featured award-winning EHR help more than 20,000 medical providers more efficiently manage the business and clinical sides of their practice. Headquartered in Irvine, California, Kareo’s mission is to help providers spend their time focused on patients, not paperwork. For more information, visit www.kareo.com.

About Greenspring Associates

Established in 2000 as a global venture capital firm, Greenspring Associates currently manages both a dedicated later stage direct investment platform as well as a globally diversified fund-of-funds platform with $2.5 billion under management. Since inception, the Firm has invested in over 60 portfolio companies alongside of its leading venture capital and growth equity managers both in the United States and Europe. Through the Firm’s value-added investment approach, it primarily invests across the information technology and communications stack as well as in the healthcare vertical. For further information, visit the Greenspring Associates website at www.greenspringassociates.com.

About OpenView Venture Partners

OpenView Venture Partners is an expansion-stage venture capital fund based in Boston that is focused on high-growth software, Internet and technology-enabled companies. Through its staff of seasoned operating executives, who collectively bring several decades of technology and management experience to the firm, OpenView is able to help portfolio companies quickly go to market and optimize their product, organization and operational functions. Founded in 2006, the firm invests globally and has approximately $440 million in total capital under management. For more information, visit

www.openviewpartners.com.

About Silicon Valley Bank

Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 27 U.S. offices and six international operations. (Nasdaq: SIVB) www.svb.com.

Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.

January 21, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 13 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Kareo Acquires Medical Billing Company ECCO Health

Acquisition accelerates growth of Kareo’s medical billing services, strengthens team, and adds specialty and geographic expertise  

IRVINE, CA – July 24, 2013 – Kareo, Inc., the cloud-based medical office software and services provider for small medical practices, announced today its acquisition of privately held ECCO Health, a full-service provider of medical billing and associated solutions. Kareo has extended employment offers to all ECCO managers and employees and all are expected to join the new combined company. The acquisition of ECCO follows Kareo’s January 2013 launch of Kareo Billing Services, and the combined business now provides medical billing services to over 500 medical practices nationwide.

“Having worked with hundreds of billing companies since Kareo’s founding in 2004, we’ve developed a deep understanding of the range of capabilities from billing company to billing company,” said Dan Rodrigues, founder and CEO of Kareo. “ECCO is noteworthy due to the strength of its team, the quality of its customer relationships, the efficiency of its operational model, and the company’s track record of innovation. The combination of ECCO’s considerable strengths with Kareo will enable us to deliver an even stronger solution to the market. We welcome ECCO’s customers and team to the Kareo family.”

ECCO Health has provided medical billing services for the last decade, building a national capability from the company’s base in Las Vegas. Through insights created by ECCO’s deep customer relationships, the company has extended its billing services to include physician credentialing, front office services, and best practice consulting. ECCO has built considerable expertise across a wide range of specialties, including Primary Care, Gastroenterology, General Surgery, Plastic Surgery, Otolaryngology, Pain Management, Endocrinology, Internal Medicine, Podiatry, Infectious Diseases, Hospitalist and Hospitalists Groups, Surgery Centers, Urgent Care, Anesthesia, Neurology, Cardiology, Dermatology and Durable Medical Equipment organizations. ECCO has succeeded by helping its medical practice customers operate more efficiently and effectively while ensuring they get paid for their important work of providing patient care.

“The strengths of Kareo’s practice management and EHR applications have been a key element of our success with our customers over time,” said Jim Sholeff, founder and partner of ECCO Health. “We also appreciate Kareo’s commitment to working in an open and collaborative way with its partners, including billing companies. Now we have a remarkable opportunity to join forces and deliver to our customers an even stronger set of solutions.”

According to a new report by Frost & Sullivan, U.S. Physician Revenue Cycle Management (RCM), the market for physician RCM solutions in 2012 was $11.1 billion and is expected to grow to $14.6 billion by 2016. “Medical Practices realize they must take every measure to maximize revenue and address inefficiencies and shortfalls in getting paid fully and on a timely basis,” wrote Nancy Fabozzi, Principal Analyst, Connected Health, Frost & Sullivan. “Medical practices will need to significantly re-engineer their entire RCM function, and most will seek solutions that offer robust integration between clinical and financial systems.”

The acquisition of ECCO positions Kareo well for the expected growth in integrated physician RCM solutions. The company now serves over 20,000 providers across the U.S. representing all medical specialties. Kareo delivers an integrated cloud-based platform comprised of EHR, practice management, and technology-enabled medical billing services. Kareo also provides a broad selection of specialty EHRs and value-added applications delivered through integrated partner solutions and maintains a network of over 600 medical billing companies that deliver their unique services utilizing Kareo’s practice management application. In 2013, over $25 billion in medical billing will be managed through the Kareo platform with software and services enabling providers to achieve the highest possible collection rates.

About ECCO Health

ECCO Health is a trusted nationwide professional medical billing service and practice management company based in Las Vegas, Nevada, with BPO operations in Chennai, India and San Jose, Costa Rica.  The Company focuses on relieving administrative duties of small and medium sized medical practices, allowing doctors to focus on patient care. ECCO provides full-service medical billing and coding, practice management, bilingual scheduling and operator service, referral and recall management, patient eligibility verification, prior authorizations and credentialing & contracting services.

About Kareo

Kareo is the only cloud-based medical office software and services platform dedicated to small practices. At Kareo, we believe that, with the right tools and support, small practices can do big things. We offer an integrated suite of products and services designed to help small practice physicians get paid faster, run their business smarter, and provide better care. Our Practice Management software, Billing Services, and free, full-featured EHR help more than 20,000 medical providers more efficiently manage the business and clinical sides of their practice. Headquartered in Irvine, California, Kareo’s mission is to help providers spend their time focused on patients, not paperwork. For more information, visit www.kareo.com.

July 24, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 13 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Kareo Buys Epocrates EHR

Small practice EHR combines mobile technology and clinical knowledge base acquired from Epocrates with Kareo’s medical office software platform

IRVINE, CA – February 20, 2013 – Kareo, Inc., the cloud-based medical office software and services provider for small medical practices, serving over 17,000 medical providers, today launched Kareo Electronic Health Record (EHR). This new application is available free of charge as a stand-alone application or integrated with Kareo Practice Management and Kareo Billing Services, providing a seamless user experience and instant data exchange across applications. Kareo EHR offers small medical practices an intuitive and intelligent way to deliver care and engage patients through native iPad and iPhone applications or with a web browser. Kareo acquired mobile technology and a clinical knowledge base from Epocrates and leveraged these assets in developing its new EHR.

“More physicians in the US practice medicine in small practices than any other way, yet the demands of managing a small practice continue to grow. Small practice physicians need smarter and more mobile technology to help them care for their patients and optimize their businesses,” said Dan Rodrigues, founder and CEO of Kareo. “Our customers asked us to develop an electronic health record to complement our practice management and billing services solutions. With Kareo EHR, small practice physicians can now take advantage of an intuitive solution designed for how they deliver care and run their practices. Best of all, Kareo’s EHR is available for free and without ads or any long-term commitments.”

Kareo EHR was designed to support how small practice physicians deliver care and interact with their patients and can be used through native mobile applications or a web browser. With mobile use, physicians can restore the natural doctor-patient interaction that desktop-based EHRs have come to inhibit, while demonstrating savvy use of technology in delivering care. Kareo EHR offers a simple and intuitive interface physicians can use to quickly build notes via clinical knowledge base pick lists or with integrated voice recognition. Regardless of device or location, all care team participants have critical, up-to-date patient health information at their fingertips. Health information can be instantly exchanged electronically, including e-prescribing medications, ordering and viewing lab work, and sharing information with patients through the embedded patient portal. Kareo EHR streamlines workflows through its integration with Kareo Practice Management providing users single sign-on and instantly synchronized data, including appointments, billing codes, and all critical patient information. Kareo EHR is certified for use, as a complete EHR, by providers to demonstrate Meaningful Use and to qualify for up to $39,000 in 2013 incentives offered under the American Recovery and Reinvestment Act of 2009.

Kareo acquired core EHR technology originally developed by Epocrates and combined it with Kareo’s medical office software platform to build the new application. Included in the acquired technology, was a comprehensive clinical knowledge base that enables documentation and treatment orders for the top 100 primary care conditions and previously unreleased mobile device technology designed to deliver efficient note taking on tablets through intuitive swipe, tap, and touch actions. The overall development effort was led by Dr. Tom Giannulli, Kareo’s chief medical information officer, practicing physician, and original inventor of much of the acquired technology. The combination of Dr. Giannulli’s leadership, Epocrates technology, and Kareo’s software platform enabled the creation of a breakthrough EHR application for small practices.

“Adopting an electronic health record is especially challenging for small practices because most EHRs were not built with their needs in mind,” said Tom Giannulli MD, MS, chief medical information officer at Kareo. “Our cloud-based solution gives small practices the promised benefits of EHR technology and eliminates the challenges of implementing complex and expensive on-premise software. It was our goal to build Kareo EHR to support the physician’s need to deliver high-quality care while ensuring the utmost in practice efficiency.”

Kareo EHR is available free of charge, with no long-term commitments, no expensive implementation or ongoing support costs. Physicians simply sign up and get started. Kareo coaches are available to help physicians take full advantage of the features of Kareo EHR and free support is included for all users. Application upgrades are delivered automatically allowing physicians to instantly utilize new functionality and meet emerging industry demands, including supporting the requirements of each subsequent stage of Meaningful Use. Kareo EHR is advertising free and clinical data are owned and controlled by the practice. Kareo’s EHR is made available for free in an effort to build trust and earn physicians’ business in other practice areas. Should they decide to upgrade, physicians using Kareo EHR have the ability to purchase and instantly integrate Kareo’s full software and services suite at any time.

Kareo has built a market leading position in delivering intuitive, integrated, affordable technology and services to support the business needs of small medical practices. The launch of the best-of-breed, no cost Kareo EHR immediately delivers these same benefits to physicians on the clinical side of their practice. Small medical practices now can rely on a single trusted partner to deliver all of the cloud-based technology needed to manage essential clinical and business components, enabling optimized practice efficiency and an increased focus on patients not paperwork. Kareo EHR is available now at www.kareo.com.

About Kareo

Kareo is the only cloud-based medical office software and services platform dedicated to small practices. At Kareo, we believe that, with the right tools and support, small practices can do big things. We offer an integrated suite of products and services designed to help small practice physicians get paid faster, run their business smarter, and provide better care. Our Practice Management software, Billing Services, and free, full-featured EHR help more than 17,000 medical providers more efficiently manage the business and clinical sides of their practice. Based in Irvine, California, Kareo’s mission is to help providers spend their time focused on patients, not paperwork. For more information, visit www.kareo.com.

Kareo EHR (formerly Caretools EHR) is a Complete EHR and is 2011/2012 compliant and has been certified by and ONC-ATCB in accordance with the applicable certification criteria adopted by the Secretary of Health and Human Services. This certification does not represent an endorsement by the U.S. Department of Health and Human Services or guarantee the receipt of incentive payments.

February 20, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 13 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.