Press Releases
RELAYHEALTH CLOSES $6.3 MILLION IN SERIES E FINANCING
U.S. Venture Partners leads round which includes Venrock Associates, e.Lilly Venture Fund, and SI Venture Management
Emeryville, CA, July 29, 2003 — RelayHealth Corporation, the premier provider of online doctor-patient communication services, today announced it has completed its Series E round of $6.3 million. The round was led by U.S. Venture Partners. Also participating were Venrock Associates, e.Lilly Venture Fund (a business division of Eli Lilly and Company), and SI Venture Management (a Gartner Group affiliate). Proceeds will primarily be used to fund product and operations growth precipitated by the company's rapid sales growth. The company has signed agreements with four major health plans and 15 large medical groups and health systems in the past 18 months.
An independent study, conducted by researchers at Stanford University and UC Berkeley, evaluated the impact of RelayHealth's online communication service on satisfaction among patients and physicians, and on the cost of care incurred by payors who reimburse doctors for webVisits—secure, structured doctor/patient e-care. Analysis of healthcare claims data found that medical office-based claims were lower by $1.92 per member per month, and that total healthcare claims were reduced by over $3.00 per member per month, for those with access to the RelayHealth® service.
That we successfully attracted these funds in an otherwise sobering capital market is testament to RelayHealth's demonstrated track record of success," said Giovanni Colella M.D., president and chief executive officer of RelayHealth. "The webVisit® Study provided compelling evidence that our secure, clinically-structured communication service reduces the cost of care, while appealing to doctors and patients alike. On the heels of those findings, we've more than doubled our customer base and established an impressive sales pipeline of leading national and regional healthcare organizations.
"It all makes for an attractive and exciting investment opportunity, as evidenced by this successful funding effort," added executive chairman Wayne Moon, who joined RelayHealth in 2002, has previously served as chairman and chief executive officer of Blue Shield of California and as president and chief operating officer for Kaiser Foundation Health Plan, Inc. and Kaiser Foundation Hospitals.
"Reimbursement is essential to success in this market, yet it's also one of the most complex challenges faced by companies in this field," said Phillip Young, general partner of U.S. Venture Partners. "RelayHealth is the only company to have successfully partnered with payors to get doctors paid for care delivered online. They've also demonstrated that webVisits can reduce healthcare costs, while being embraced by patients and physicians. This is precisely why they've gained our support. No other company in this space has generated such an impressive track record of success."
About RelayHealth Corporation
RelayHealth is the premier provider of secure online healthcare communication services linking
patients, healthcare professionals, payors, and pharmacies. RelayHealth's Web-based, doctor-patient
messaging platform connects doctors and their patients efficiently, affordably, and securely.
Tuned for both the individual and group practice environments, the RelayHealth® service
improves and streamlines healthcare delivery and access through modular features—like
the webVisit® clinical consultation—which tackle complex issues unique
to the healthcare market, including clinical structure, practice workflow, and reimbursement.
More secure and efficient than telephone or e-mail, RelayHealth combines HIPAA-ready messaging
and eScript end-to-end electronic prescribing for the most seamless, comprehensive,
and powerful messaging platform available to healthcare professionals and their patients.
For information, visit www.relayhealth.com.
