Procured Health Bags Itself $4M Series A From FCA Venture Partners.
Upcoming startup Procured Health has recently managed to gain $4 million in Series A funding round.
Leading this investment round was a healthcare-focused company named FCA Venture Partners. This startup provides a subscription like software that can help healthcare providers inform their customers on purchasing decisions and how to avoid overpaying. Currently the company is collaborating with Asante Health, Hoag Hospital, St.Charles Health and ovet two dozen more hospital systems.
The prices for medical devices in the US is far from conspicuous. Doctors are now knowledgeable when it comes to cost of a blood pressure monitor or spine screws are really worth. Hani Elias, Procured Health’s Chief Executive Officer mentioned that the gross margins of medical device creators tend to be very pricey because of the “really high price points” that are not regularly monitored. Furthermore, it has been a regular occurrence for manufactures for purchasing departments of hospital to stay quiet about the prices.
Due to the confidentiality restriction, manufacturers can write up different quotes to different hospitals for a single product. This has actually been revealed back in 2012 in a report done by the Government Accountability Office which commented on that as far as knee implants went, hospitals paid from a varying price of up to $3,408 to $10,830 while prices ranges for implantable cardioverter-defribrillators went between $19,578 to $35,916.
Eric Meizlish, the Chief Operating Officer for Procured Health had told various sources that, “Hospitals have not been sophisticated evaluators of medical devices or new technology.”
With Procured Health offering a solution to this dilemma, physicians will have a chance to provide feedback and recommendations regarding medical device. Hospital administrators can use the software in order to search through varoius products with different price ranges and quality before choosing an item to purchase. The service comes at an opportune time as the Affordable Care Act has led hospitals to keep a watchful eye on their costs.