Procured Health, a startup that offers help to hospitals better discover, evaluate and adopt quality medical device has raised $4 million in Serias A funds from health care-focused firm FCA Venture Partners.
Procured Health is cofounded by Egyptian entrepreneur CEO of the company Hani Elias, it also previously raised $1.1 million in seed funding from a number of angels and VCs. Including Jordanian based VC Silicon Badia.
Medical devices make up 20 to 25 percent of hospital expenses, spending on medical devices reached an estimated $150 billion in 2010. Most doctors are completely in the dark about how much it costs to buy a blood pressure monitor. And Some manufactures charge hospitals more than others.
“In the face of revenue and reimbursement pressure, it is absolutely critical that hospitals gain control of their operating expenses. By providing hospitals with the means to be more effective purchasers of products and devices they use every day, we can materially reduce the cost of providing care to their patients and thereby improve access to care,” said Hani Elias, on a press release by the company.
Procured’s web-based solution enables hospital systems and caregivers to improve both clinical and financial performance by incorporating evidence into their procurement strategy, driving vendor competition where outcome differentiation is unproven, improving utilization and physician compliance, and leveraging scale.
Procured is already working with U.S. hospital systems like Hoag Hospital, Asante Health, St. Charles Health, and about two dozen others to bring some much-needed transparency to medical-device pricing