Providence spinout Xealth raises $24M to expand digital health services
Xealth, which handles digital health strategies for more than 20 hospital systems, has raised $24 million in new funding, the Seattle-based startup announced Tuesday.
Xealth’s platform builds on the growing ecosystem of health care apps and digital services. The company enables health providers to access and monitor such tools, including remote patient monitoring devices, health questionnaires, prescription services and traditional smartphone apps.
“Ultimately we want to be the ubiquitous platform for prescribing and monitoring digital health,” CEO Mike McSherry told GeekWire. McSherry previously led Swype, which sold to Nuance for $100 million in 2011, and he was a GeekWire Startup CEO of the Year finalist.
McSherry has been CEO of Xealth since 2017, when it spun out of Providence, the largest health system in Washington state.
Xealth integrates its services with electronic health care records so that patients can share information directly with providers. Providers, in turn, can gain insight into the tools’ performance with patients. Xealth integrates with the country’s largest electronic health record vendors.
The startup makes money by licensing its platform to hospital systems; the systems decide which apps or platforms they want for their patients. The company currently offers services from more than 50 digital health vendors.
The new investment brings the total funding for the 55-employee company to $52.6 million. Xealth aims to double its workforce with the new funds and enhance its software to help providers understand how the tools are being used and recommend the best ones to patients.
“I think over over time you’re going to start to see age, language, gender, geography, ethnicity, all play a role in which of these digital therapeutics is working for which patient populations,” said McSherry.
A growing number of companies, such as Seattle’s Accolade, connect digital health resources to patients via employers, said McSherrry. But Xealth aims for hospitals and in addition offers full integration into major electronic health care systems, he said.
Xealth has also paired up with another Providence Ventures portfolio company, Twistle, which enables remote monitoring via text for COVID-19 patients who need monitoring but are well enough to stay at home rather than be admitted to a hospital. The partnership has remotely monitored more than 20,000 patients at Providence and tens of thousands at other systems.
Xealth’s new funding builds upon a collection of health startups fostered by Providence. These include health data company Truveta, which recently raised $95 million with backing from 17 participating healthcare systems.
The Series B round was led by Advocate Aurora Enterprises, a subsidiary of Advocate Aurora Health, a health system based in Milwaukee, Wisc. Xealth has backing from an additional 14 health systems, including Stanford Health Care and the Cleveland Clinic. Additional investors include Cerner, LRV Health, Threshold Ventures, McKesson Ventures, Novartis, Philips, and ResMed.