Columbus, Ohio-based PriorAuthNow, maker of an electronic prior authorization platform, has closed a $10.5 million Series A funding round. The investment was led by Atlanta-based BIP Capital, with participation from NCT Ventures and Detroit Venture Partners.
According to a statement, the funding will primarily be used to advance the company’s operating capabilities and expand its team, with an aim to double its staff over the course of 2018.
“This significant funding is a huge vote of confidence in our business and will fuel our next phase of growth,” Joe Anstine, CEO of PriorAuthNow, said in a statement. “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. We’re experiencing substantial revenue growth in 2018 and currently expect to triple our revenue again in 2019.”
PriorAuthNow offers providers secure software that simplifies how they connect with insurance carriers. Hoping to make submission, monitoring, and finalization of prior authorizations faster and more economical, the company’s software acts as a single product that replaces the phone calls, faxes, and payer portals that often comprise the process.
“PriorAuthNow is a disruptive technology platform that automates a highly manual process that plagues every health system and provider in the United States. It provides an immediate ROI for hospital executives looking for improved cash flow and revenue cycle,” Sarath Degala, VP of BIP Capital, said in a statement. “PriorAuthNow CEO Joe Anstine is a dynamic leader with a unique vision and has surrounded himself with a passionate team who will continue to climb mountains in the company’s evolution.”
PriorAuthNow previously raised $3.6 million in 2017 in a round led by NCT Ventures. After launching its software in 2018, the company said that its product is currently serving 39 hospitals and health systems, and has more than 1,600 unique users. Further, the company said that the service has reduced the turnaround times of client authorizations by more than 25 percent, with 45 percent of submitted requests requiring a decision resolved within a single business day.