PatientKeeper Collects $13M Funding, Puts VC Chip Hazard on Board

12/15/09

PatientKeeper is developing software for physicians that will help them comply with planned federal guidelines for the use of electronic medical records. And the Newton, MA-based firm says today that it’s raised $13 million in debt and equity funds to cover the costs of updating its products and supporting business growth.

The equity portion of the funding came from previous backers Flybridge Capital Partners, New Enterprise Associates, and Whitney & Company. Chip Hazard, a general partner of Boston-based Flybridge, is joining the board of directors at PatientKeeper as part of his firm’s latest investment in the company. Also, Lighthouse Capital Partners is providing the venture debt for this transaction. The exact amounts of equity and debt funding in the round were not disclosed.

This is a crucial time for PatientKeeper and other providers of software for storing and sharing electronic medical data. The U.S. government is expected to approve new standards for the “meaningful use” of electronic health records (EHRs) in 2010, and doctors will need to follow those standards to qualify for billions of dollars in federal incentives for adopting EHRs. And PatientKeeper wants to make sure that its software—specifically the applications that enable doctors to order medical tests for patients with their smartphones or other computers—will enable physicians that use their technology to qualify for the federal incentives.

“Since our initial investment in PatientKeeper last year, we have been extremely pleased with the company’s progress and see great opportunity for them as more and more [healthcare] providers look to secure economic stimulus funds to help healthcare organizations achieve meaningful use [of electronic records],” Flybridge’s Hazard said in a statement.

Flybridge previously backed PatientKeeper in a $7.5 million Series F round of venture capital revealed in August 2008, at which time the firm had raised a total of $75 million from investors. There are now more than 15,000 physicians using the company’s software, according to the firm.

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