Healthcare data company Diameter Health has raised $18M in Series B funding. The funding round was led by managed care organization Centene Corporation, with participation from existing investors Optum Ventures, LRVHealth, Connecticut Innovations and Activate Venture Partners. This brings Diameter Health’s total funding to $30 million.
“We are thrilled to have Centene Corporation join the Diameter Health investor syndicate in this round,” said Eric Rosow, CEO and co-founder of Diameter Health. “This new financing validates that our technology is a valuable component to solving today’s challenges of health data interoperability across an enterprise. Normalizing, enriching and integrating data across sources is time-consuming and expensive. Organizations are using our API to accelerate their own data enterprise strategy and are driving real cost efficiencies and value in closing care gaps, more accurately assessing risk, strengthening underwriting, and ultimately improving patient care and outcomes.”
Diameter synthesizes clinical data, turning it into a valuable asset for health information exchanges. Its leading FHIR-enabled integration engine, Fusion, parses, normalizes and enriches over 225 million clinical documents on behalf of health information exchanges, the Veterans Administration, state governments, large health plans, health IT vendors as well as life insurance companies, Diameter Health said in a press release.
“We invested in Diameter Health because their ability to automatically integrate and normalize clinical data will play an important role as we look to accelerate innovation and digitization across our company,” said Centene Executive Vice President and Chief Information Officer Mark Brooks.
The investment comes at a key time of growth for Diameter Health and the U.S. healthcare market as a whole, as recent legislation outlined in the 21st Century Cures Act will accelerate increased collaboration and data sharing across the industry. The recent funding round positions the company to build on its significant momentum in the health plan and life insurance space and to advance its mission to enable data interoperability and optimization across an enterprise.
Mike Cunningham, Principal with Optum Ventures and Diameter Health board member said, “Diameter Health’s growth is accelerating in the health plan markets at impressive rates. We see the company as being fundamental in supporting the use of data across digital health transactions for healthcare organizations in the future.”
Diameter Health plans to use the new funding to expand Fusion’s ingestion capabilities to accept all health messages, standards and data sources as well as to further enhance Fusion’s real-time enrichment and analytics with machine learning capabilities like natural language processing. Diameter Health also plans to expand its large network of direct connections between Electronic Health Record (EHR) systems, Health Information Exchanges (HIEs) and other healthcare data sources to enable more widespread, seamless and secure data exchange.