Predilytics generates insights from big data to improve quality of care, retain membership, manage costs, generate additional revenue and coordinate care for both health plans and providers.
The company recently completed two successful pilots with health plans and has a third in progress. They will use the funding to expand product offerings and grow operations with a focus on analytics, information technology, application development and account management.
“We are excited to bring a new approach to identifying health improvements and business opportunities to the healthcare market,” said Christopher Coloian, Predilytics President and CEO, in a press release announcing the funding. “With the closing of this transaction, Predilytics is well positioned to expand our leading-edge offerings, provide a great service experience to our customers, and execute on our strategic vision. We are very pleased the company has attracted such high quality investors, given their long history of partnering with healthcare, life sciences and information technology enterprises.”
“The healthcare industry is undergoing incredible change as a result of increasing chronic illness, the aging population, policy and health reform and the economy. We know that Predilytics’ ability to identify new insights to prioritize opportunities for health improvement is a key element to a strong healthcare system,” said Michael Greeley, general partner, Flybridge Capital Partners. “We are excited to help bring the new Big Data and Computer Science Approach to market.”
The company claims their predictive models are 2-4x more insightful and actionable than conventional statistical/regression modeling and rules-based methods. They accomplish this by utilizing all available data, including administrative data (e.g. claims, Rx, labs), service operations (e.g. call center), care management operations (e.g. HRA), and electronics medical records. The company is also capable of utilizing both structured and unstructured data with their natural language data analysis software.
“What healthcare analytic firms typically do is build binary rules and trim data down to manageable amounts,” said CEO Coloian in an interview with MedCity News. “Our approach involves using computer science to provide automated analysis to continually create new insights. We are doing what marketing and financial service companies have been doing for years.”
Predilytics estimates the market for health informatics to be a $2 billion opportunity, which I think is a very conservative estimate, especially as we officially enter the era of the Accountable Care Organization (ACO) next month. Under the new ACO model, providers will need to use big data to prove they provided care than actually lead to better outcomes in order to get paid by Medicare and other payor groups. I suspect Predilytics will find the market it is targeting will be getting very crowded in the coming months as entrepreneurs begin to understand the magnitude of the opportunity emerging in big data analytics for health care.