OutcomeMD, a nine-year-old health tech company which received investment from venture capital stars, is charting course for growth with new funds and a new chief executive.

Earlier this month, the Beverly Hills-based OutcomeMD finalized a round of funding of $15.2 million, which was raised over a four-year period. It will bring its cumulative investment to $17.6 million, according to the company’s financial documents.

Dr. Justin Saliman, OutcomeMD’s founder and president, declined to confirm the venture capitalists leading the most recent funding round.

Past rounds have been led by Steve Jurvetson of Future Ventures, who was also one of the early investors in Tesla and Hotmail. Jurvetson also serves on the board of directors for Space Exploration Technologies Corp., better known as Space X.

In a 2022 statement, Jurvetson said OutcomeMD has the potential to disrupt the business of health.

“OutcomeMD discovered something that no one else has, by shifting physician revenue models to reward good outcomes, they are poised to reduce health care spending,” Jurvetson said. “It is an elegant and groundbreaking solution that aligns incentives with efficacy.”

New and expanded pastures

Jean Paty will be leading OutcomeMD into a new chapter of development, as he was tapped as the new chief executive officer in April. He worked extensively in the biopharmaceutical market and has a background in business and patient health data analytics, Saliman said.

Some of OutcomeMD’s new funding will be used to hire new staff, invest in technology and hone a communications campaign to pitch the company’s services to the healthcare industry, Paty said.

“The OutcomeMD team has done a wonderful job of developing a strong proof of concept that the company’s platform works as intended,” he said. “But the market wasn’t quite there until now.”

Paty said OutcomeMD benefitted from the patience of investors who gave time for the company to develop.

Another star investor involved with the company is Farhad Mohit, who founded comparison shopping site BizRate.com. Mohit serves on OutcomeMD’s board of directors.

Patient-reported outcomes

OutcomeMD’s platform is rooted in patient-reported outcome measures or PROMs. At a basic definition, PROMs are surveys which ask patients about their symptoms and health-related quality of life. OutcomeMD’s platform offers an opportunity for health care professionals and patients to track a person’s symptoms and how they change over time.

When patients report ill health, the platform alerts doctors. The company’s methods of crunching data and making it palatable to health professionals will develop improvements in health care, Paty asserted.

The platform can demonstrate a return on investment for doctors, beyond being compensated for patient care, Paty said. One possible revenue stream is building revenue through marketing. Doctors can demonstrate their success, attract more patients and negotiate favorable contracts with payers.

“Good data equals revenue,” Paty said. “OutcomeMD has established connections to research groups who are very interested in PROM data from routine health care contexts.”

OutcomeMD is part of a group of companies that use PROMs to guide health care. Also focusing on data science to guide patient healthcare are Patient IQ, headquartered in Chicago, Keet Health, based in Austin, Texas, and OBERD, based in Columbia, Missouri.