See the 29-slide pitch deck that a digital health startup used to raise $24 million entirely from its hospital customers
- Xealth sells software for prescribing services like remote patient monitoring or health apps.
- The company raised $24 million in a Series B round led by Advocate Aurora Health's enterprise arm.
- Xealth is betting that tech-based therapies and remote patient monitoring will continue to surge.
Software company Xealth sells tools doctors can use to order and prescribe digital health services, like remote patient monitoring or educational material.
And it's those hospital customers that drove the startup's latest $24 million funding round, bringing total funding to $52.5 million. Advocate Aurora Enterprises, a subsidiary of the 15-hospital system Advocate Aurora Health, led the round.
Xealth stitches together digital services from disparate vendors, making it easier for doctors to order them directly from electronic health records systems. It also recommends apps that could be helpful for specific patients, a particularly useful service, Advocate Aurora Enterprises president Scott Powder told Insider.
The pandemic's rapid transition to virtual care boosted health systems' interest in Xealth, CEO Mike McSherry said. And the company expects hospitals will only continue to ramp up digital health investments, he said.
"What we're building ourselves towards is that inevitability that a there's the need for a digital health platform to aggregate the different range of apps, devices, tools, services," McSherry said.
The goal, he added, is to be a consistent standard across health systems.
Seven new health systems participated in the round: Banner Health, ChristianaCare, Cone Health, Memorial Hermann, Nebraska Medicine, Novant Health, and Stanford Health Care. Existing health system investors including Cleveland Clinic and Providence also participated.
Xealth gave Insider a look at the pitch deck it used to raise the funds. It has been edited to remove some financial information.