Doctor analytics startup MD Insider of Santa Monica has raised a $12 million Series B round.
MD Insider intends to use the money to hire additional sales and marketing staff to push customer acquisition.
Branding itself baseball statistics for doctors, MD Insider uses medical data to determine doctor performance on specific medical procedures. The company said it has processed and analyzed billions of health records, covering more than 850,000 doctors, over 6,000 hospitals and more than 30,000 diseases and conditions.
Acquiring, organizing and analyzing medical data, however, isn’t cheap or easy. To buy medical records, which are notoriously difficult to access, MD Insider spent millions of dollars from its initial $9.5 million Series A round, said MD Insider Chief Executive David Norris.
“For us, one of the unique differentiators is that we have data that is hard to get,” he said.
In addition to selling to big health systems like Cedars-Sinai, MD Insider also sells a doctor search and assessment platform to corporations which, in turn, offer the tool to their employees. Oracle Corp., Starwood Hotels and Resorts Worldwide, Expedia Inc., Qualcom and DirecTV are counted as customers, said Norris.
The Series B round was led by Summation Health Ventures, a venture firm formed by Cedars-Sinai and MemorialCare Health Systems. The round also includes investments from prior backers Jason Ader, Gary Winnick, Tim Ferriss and Michael Fertik. As part of their companies’ investment, Cedars-Sinai Chief Information Officer Darren Dworkin and Summation Senior Managing Director Brant Heise have joined the MD Insider’s board. Winnick also has a board seat from his previous investment in the company.