San Francisco-based startup Practice Fusion raised $34 million in its latest Series C funding round in support of its free online electronic medical record service, which the company says represents the largest physician-patient community in the U.S.
The web-based EMR platform now services more than 150,000 medical providers and 40 million patients, which amounts to about 10% of the U.S. population and more than double the Kaiser and Veterans Administration combined, according to a press release.
Added to more than $34 million in federal stimulus incentives and other smaller funding rounds, Practice Fusion’s total take comes to about $75 million since the company launched in 2007.
"One out of four doctors choosing an EMR today chooses Practice Fusion," CEO and founder Ryan Howard said in prepared remarks. "This investment will accelerate the launch of our patient strategy as well as the company’s API platform and allow us to continue to dominate the market."
The new funding will help spur growth, Howard told the Wall Street Journal. The company is hiring about 20 new employees per month and expects to be 300-strong by the end of the year.
Practice Fusion’s EMR platform aims to improve efficiency in healthcare by digitizing the entire workflow of patient care, including charting, scheduling, referral letters and lab integrations, according to the press release. The system also provides patients with access to their own records.
"Not since YouTube have we seen a company with such spectacular growth, capable of having such a profound and lasting positive impact on our daily lives," lead investor Artis Ventures partner Mike Harden said in prepared remarks. "By empowering doctors and patients with easy-to-use health management tools, Practice Fusion stands out as an establishment of genuine progress."
Funding was also provided by long-time investors Felicis Ventures and Band of Angels, as well as Glynn Capital, Ali and Hadi Partovi, Founders Fund, Morgenthaler Ventures, Scott Banister, SV Angel, Ghost Angel, Barton Asset Management, and a number of other institutional and individual investors.
Earlier this year Practice Fusion landed more than $2 million in additional funding from angels investors, including former Facebook mobile director Jed Stremel, LinkExchange co-founder Ali Partovi and Hadi Partovi, co-founder of Tellme.