Circulation is looking to change the way non-emergency patients are delivered to the hospital, and those efforts were bolstered Tuesday by the news that it raised $10.5 million in Series A financing from a group of leaders across the healthcare system.
Flare Capital Partners and The Providence Service Corporation co-led the investment and were joined by Boston Children’s Hospital, Echo Health Ventures (a strategic collaboration of Cambia Health Solutions and Mosaic Health Solutions), Intermountain Healthcare Innovation Fund (a strategic investment vehicle of Intermountain Healthcare, managed by Healthbox), Humana, NextGen Venture Partners and the world’s leading healthcare diagnostics company.
The capital will be used to fuel Circulation’s expansion and growth across the country. The company, which launched less than a year ago, has been growing and picking up steam of late, with almost 50 clients across 1,000 hospitals, clinics, community health centers and other facilities. It has also touted some major industry advancements in cost savings, patient satisfaction ratings and appointment adherence improvements.
Dr. Robin Heffernan, Circulation’s CEO, said the company has “significantly increase(d) patient satisfaction rates while simultaneously cutting ride costs by up to 70 percent -- a clear benefit for our healthcare clients and their populations served.”
Circulation uses technology to manage logistics and transportation throughout healthcare, and has been designated Uber’s Preferred Healthcare Partner, providing a customizable and digital means of coordinating non-emergency transportation. The HIPAA-compliant approach is utilized by patients, caregivers, providers, staff and volunteers alike.
“On the satisfaction side, we get ratings from every ride from the person who took it and the person who booked it,” said Heffernan. “And it’s a one- to five-star rating. And right now we’re about a 4.9. So that’s pretty good.
“On the savings side, that’s more tangible because all of our clients have saved at least 40 percent,” she said. “The highest savings have been around 70 percent.” Even more pertinent, she said, is the ROI when it comes to downstream utilization: Some of the company’s clients started off with 30 percent no-show rates, and most are already down to about 8 percent, depending on the appointment type.
Heffernan said the company will stay focused on its core business, but will also look to expand its client base, and potentially start moving product and durable medical equipment as well as patients. She expects market penetration to grow.
“It’s been taking off quickly,” she said, “and just in healthcare in general, once you get five clients, 10 clients, then it moves faster. They talk to each other and it’s a small market. I think we’ll continue to see that.”
Michael Greeley, co-founder and partner at Flare Capital Partners, said in a statement that Circulation’s growth validates Flare’s initial seed financing in late 2016, while James Lindstrom, CEO of Providence, said he sees “substantial opportunity in Circulation’s on-demand, patient-centric digital transportation platform, particularly for integrated healthcare facilities and systems.”This Weekend's Hottest Sneaker Releases (And Where to Find Them)