The U.S. spends about $4 trillion on healthcare each year, of which $1 trillion is spent on healthcare administration. As with many things in healthcare, much of the administrative work providers must do to manage their clinicians’ credentials is manual, paper-based, time-intensive and housed in disparate systems.
This problem led to the founding of Medallion, a provider management platform that automates licensing, continuing education tracking, credentialing and compliance. On Thursday, the startup closed a $35 million Series C funding round, bringing the total amount of capital it has raised to $85 million. The round was co-led by Spark Capital and new investor GV (formerly Google Ventures), with participation from Salesforce Ventures, Sequoia Capital, Optum Ventures, BoxGroup and Elad Gil.
Derek Lo, an alum of this year’s Forbes 30 Under 30 Healthcare list, founded Medallion in 2020 with the mission of reducing healthcare’s overhead spend on administration by automating the manual components of the credentialing and continuing education process. Medallion’s platform enables healthcare organizations to get their providers licensed in new states, renew their existing licenses, track provider progress toward continuing education completion, enroll with insurance plans and verify a provider’s credentials.
The San Francisco-based startup sells its software to digital health companies, health systems, provider groups and payers. It now has more than 200 customers, ranging from smaller organizations with 5-10 employees to organizations with more than 1,000 employees. Medallion will also work with independent physician practices as long as they have five or more providers, Lo said.
Without automation software, organizations must manually track their providers’ license renewal dates, as well as the states in which applications are pending. They also must manage all back-and forth communication with providers and state boards, which can add hours onto staff’s work schedules and cause burnout.
“Medallion eliminates all of this work for our customers and manages the entire process end-to-end, even the communication with the state board and the provider,” Lo said. “It’s a very similar process for payer enrollments, too.”
Like any SaaS company, Medallion sells its technology with a platform fee. It also offers additional bundles for licensing, payer enrollment and credentialing. Some of the customers using Medallion’s platform include Headspace Health, Oak Street Health, Carbon Health, MedExpress, hims, Tia and Longevity Health Plan of Florida.
The startup’s competitors include symplr, Availity and MedTrainer. Lo declared that Medallion is different from these companies because no other platform is comprehensive enough to offer an all-in-one platform — his company’s software can manage everything from licensing and continuing education to credentialing and payer enrollment.
Medallion’s funding round comes amid rapid growth — just six months after its Series B and twelve months after its Series A. The company has also nearly doubled its employee count to 150 since its Series B.
The new funding will be used to “double down” on Medallion’s efforts to expand the diversity of its customer base, as digital health companies currently comprise the majority. The company is looking to bring on more health system and payer customers, according to Lo. He said the money will also be used to accelerate product development and expand its strategic partnerships.
The Series C funding takes Medallion’s post-money valuation to $350 million, up from $200 million after the last round.
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