Automating daily tasks is one of the greatest perks of modern tech and the fact that it is raising our standard of healthcare is the cherry on top. Revolutionizing patient outreach CipherHealth is an analytics platform creating a suite of tools that streamlines daily hospital care routines. Working across all levels of care, the Cipher platform is there for you every step of the way. The company is HIPAA compliant and recently won an award with Klas for its patient outreach initiatives.
AlleyWatch spoke with CEO and cofounder Randy Cheung to learn about how the company plans to work with healthcare organizations to continue expanding after their latest round of funding.
Who were your investors and how much did you raise?
This round of funding, which we are very excited to announce, is a Series A round with JMI Equity for a total of $37.5M.
CipherHealth offers a premier patient engagement suite of solutions that engages patients throughout their entire care journey to enhance communication with providers, and enable more efficient care management at every point along the continuum.
CipherHealth works hand and hand with providers and has proven to help healthcare organizations achieve quadruple aim goals – reducing costs, improving patients outcomes, and enhancing experiences for both patients and care providers.
What inspired you to start CipherHealth?
The cofounders, Alex Hejnosz, Zach Silverzweig, and I noticed a need for better patient engagement over a decade ago. We saw the landscape of healthcare changing and the needs of patients evolving. We knew that to truly impact patient lives, we had to work with providers to simplify care coordination and communication. With our technologies help the providers deliver better and more patient-centered care.
How is CipherHealth different?
CipherHealth offers the only solution capable of engaging patients throughout their entire care journey and we are the only company that covers patient engagement across the care continuum in nearly every care setting – hospitals and physician groups to post-acute providers and integrated delivery networks.
What market you are targeting and how big is it?
We started in hospitals, but we have grown to provide services for ambulatory surgery centers, clinics, physician offices, skilled nursing facilities, home health agencies, accountable care organizations, and managed care organizations.
The company has had impressive growth over the last year. What can you attribute this growth to? Any advice for founders on growth you can share?
Our team has great vision and we have been recognized by organizations like Modern Healthcare, Inc. and Crain’s as one of the best places to work for the past 5 years. By enabling a culture for growth and innovation, we allow team members at all levels to provide meaningful contributions that have a lasting impact.
What was the funding process like?
It was a great learning experience. JMI actually approached us back in 2012. We spent our time growing and then after looking at other firms, it turned out JMI was in fact the best fit for us.
What are the biggest challenges that you faced while raising capital?
Not much. During this long process, we spent time with a great number of Private Equity firms and Strategic partners – it’s important to take your time and find the right fit.
What factors about your business led your investors to write the check?
Of all the potential partners, JMI was by far the best group of people to work with. Their style is just like ours: They are serious about results, but they are also respectful, transparent, and open-minded – and they aren’t afraid to have a little fun.
What are the milestones you plan to achieve in the next six months?
CipherHealth’s growth plans this year includes initiatives centering on its operations and concentrating on growth-enabling processes.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Don’t be afraid to have vision, even if it is ahead of the times. It will pay off in the end.
Where do you see the company going now over the near term?
We expect faster growth and more opportunities as we expand the team. Our vision will remain to help our customers deliver better care through more effective patient engagement and care coordination activities. The JMI partnership will enable us to execute our strategy faster and more effectively.
What’s your favorite restaurant in the city?
Peter Lugar’s Steakhouse and Halal Guys