Recondo Technology closes $16M funding round to support growth
Thursday November 3, 2016
GREENWOOD VILLAGE -- Recondo Technology, a market leader in cloud-based single-platform revenue cycle management solutions, today announced it closed an additional $16 million in debt and capital funding to support and accelerate the company's future growth curve.
Lemhi Ventures led the round, with Bridge Capital serving as the debt partner.
Recondo said the capital will be used to fund significant continued product development investments, particularly in areas of API-enabled revenue cycle content, expanded claims statusing, and authorization automation -- all solutions designed to measurably improve financial outcomes.
Recondo, which is experiencing a 50 percent year-over-year increase in bookings, said it attributes its recent growth largely to the success of its industry-leading Claims Status Plus (CSP) solution, used by more providers than all competing products combined. The company anticipates its growth in the fourth quarter will remain at the same or higher level.
"We are thrilled that Lemhi Ventures chose to continue their longstanding relationship with us to support our effort to advance major innovations for US healthcare," said Jay Deady, Recondo CEO.
"I am extremely proud of our team's execution in driving growth in excess of 50 percent year-over-year, while simultaneously achieving corporate profitability for the first time in the company's history. Recondo is poised to leverage this investment to further execute on our aggressive growth strategy."
In addition to the market success of its Claims Status Plus solution, Recondo said it is experiencing significant growth with its Auth-DP suite of automated authorization tools. Given the pace at which payers introduce and revise authorization requirements and rules, Recondo said it is vital for healthcare providers to align with a solution provider that maintains and monitors policies and rules as a service, to eliminate the manual burden and expense of authorization content management.
Recondo said it has grown its authorization rules library content to over 700,000 rules, which are curated and expanded every two weeks.
Additionally, the significant increase in covered workers choosing high deductible and health savings account plans (HDHP/HAS), up from 4 percent in 2006 to 24 percent in 2015 and expanding monthly, has medical providers struggling to provide consumers with accurate pre-treatment estimates to help with financial planning. Recondo's price transparency solutions -- SurePay Health and its recently introduced consumer-facing solution, MySurePayHealth -- enable medical provider staff, or consumers on a direct basis, to receive fast, accurate estimates for financial planning and pre-service collection. Recondo currently produces over 9 million estimates annually, representing in excess of $3 billion of consumer out-of-pocket spend obligation.
All Recondo solutions are powered by Recondo's patented Reconbot® technology, which takes the revenue cycle to the next level by automatically querying payer websites and then retrieving, normalizing and presenting actionable, workflow-contextual information critical to the patient access and claims follow-up process.
"We are especially excited about the growth and new product innovation that Jay and the Recondo team have driven," said Jodi Hubler, Lemhi's managing director and Recondo's board chair.
"Lemhi was purpose-built to incubate and fund disruptive healthcare service companies like Recondo through their life cycle. I believe we'll continue to see strong market demand for Recondo's solutions and a bright future for the company."