DexCare Inc., a platform-as-a-service company that spun out of Washington-based Providence, has received $50 million in a second round of funding.
Seattle-based DexCare was developed by Providence, one of the largest health systems in the United States. Initially developed as the platform for Providence's ambulatory care business, DexCare has been driving patient acquisition, navigation and capacity optimization for the organization since 2016, according to officials.
In March 2021, DexCare announced a $20 million investment that was led by Define Ventures and also included Frist Cressey Ventures, Kaiser Permanente Ventures, SpringRock Ventures and Providence Ventures. Early customers included Community Health Network, the Froedtert and the Medical College of Wisconsin health network, Houston Methodist, and Providence. Other customers include Kaiser Permanente, Mass General Brigham, the company said.
The $50 million Series B funding is led by Transformation Capital, with participation from all existing investors.
The company said that health systems have implemented DexCare to expand access to care in more intelligent and data-driven ways that meet the needs of patients while achieving a more balanced and operationally efficient utilization of their resources. In 2021, DexCare expanded its platform to power access across a variety of applications including:
• Health systems: large, national health systems, mid-sized regionals, and academic centers
• Care modalities: video, phone, in-person, on-demand, scheduled
• Service lines: same-day care, urgent care, primary care, specialty care
The new funds will be used to support and accelerate DexCare’s growth with investments in product and technology innovation, customer experience, and recruiting.
“DexCare was essential in digitally transforming our ambulatory care model to better serve the needs of patients and was also a key part of Providence’s digital response to COVID,” said Aaron Martin, executive vice president and chief digital officer at Providence, in a statement. “We’re excited that the platform incubated by the Digital Innovation Group, and that has added so much value to Providence over several years, is seeing such an enthusiastic reception from other health systems. We’re looking forward to the innovations the DexCare team will deliver to customers as a result of this latest fundraise.”
Last year, Sarah Pletcher, M.D., vice president and executive medical director of Virtual Care at Houston Methodist, described the value of DexCare to her organization this way: “Like many hospital systems, COVID triggered an increased demand for virtual care offerings, but not every health system can offer the service and coordination and orchestration of primary and specialty care the way that we do. So, for us, our virtual infrastructure had to facilitate that richness. DexCare offers us a ‘wrapper’ that pulls patients and consumers into our environment with ease.”
DexCare is the third company incubated by the Providence Digital Innovation Group. The first was Xealth, which enables clinicians to prescribe and monitor digital health content, apps and services as easily as they do medications or orders today. Xealth was spun out of Providence in 2017. The second was Circle, a women's health technology company, that was sold to Wildflower Health in 2018.
