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Thoughts on Practice Fusion Raising $70 Million

Today, Practice Fusion announced that they have just closed a $70 million round of funding. This series D round of funding brings Practice Fusion’s total funding to $134 million and a valuation estimated at $700 million. The round was led by Kleiner Perkins Caufield & Byers, OrbiMed Advisors, and Deerfield Management Company.

We’d heard that this round was close almost 2 months ago. I’m not sure what took them so long to finally close the round. I also found it interesting in this Forbes article about the funding round that “Practice Fusion leads vendors this year in acquiring Allscripts’ former customers.” I have a feeling Aprima might have something to say about that.

In that same article, Practice Fusion declined to disclose revenues, but Ryan Howard suggested that he expects Practice Fusion revenues to triple next year. Then, it was suggested in the article that payments from labs connected to Practice Fusion customers would make up a significant source of revenue. You might remember that Practice Fusion lost one revenue stream when Kareo decided to launch their own free EHR. Practice Fusion has since rolled out 3 new billing companies and so they could have made up that revenue.

The article also suggests that revenue is available from Pharma for mining the Practice Fusion data for insights. Then, they’ve always talked about the potential for pharma advertising in the Free EHR. I also had someone suggest to me recently that Practice Fusion could be making money off of selling leads to the various healthcare education companies out there. Considering the number of emails I get from these healthcare education companies, they definitely have money to spend on targeted leads.

The question I’ve asked for many years isn’t whether Practice Fusion has created value. No doubt their current user base and data set has value. The question that remains is whether they’ve created a company that merits a $700 million valuation and whether the $134 million investment will yield a quality return. Plus, can Practice Fusion build the company’s revenue while still maintaining physicians’ trust in Practice Fusion. They now have $70 million in funding to find out.

September 24, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 13 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Connecting Physicians with Pharma Reps

I was recently introduced to an interesting new offering in the healthcare IT space that’s trying to help facilitate the physician – pharma sales rep relationship called RxVantage. It’s always been an awkward dance between the two groups and so it’s interesting to see a company focused on facilitating the relationship. Pharma reps can bring a lot of value to a doctor when it comes to information on a new drug and access to samples for their patients. However, those reps can also be a drain on their day to day activities unless they’re managed well. This video from RxVantage is a funny look at the challenge:

I’ll admit that I’m no expert on the pharma sales rep business, but I’ve seen first hand the challenge of their job and doctors trying to juggle that relationship. I think RxVantage is an interesting way to try and facilitate the relationship between the two groups.

With pharma reps having more and more challenges and roadblocks to their relationship with doctors, it’s interesting to see a proactive way to manage that relationship. Plus, this provides a simple way to track your relationship and interaction with each provider. In some ways it’s almost like a CRM for pharma sales reps, but largely driven by the physician practice.

I’m sure we’re looking at more and more regulations when it comes to the relationship between pharma and doctors. Finding a way to manage that relationship a midst the changing regulations is going to be important.

September 19, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 13 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Patient Centricity in Pharma – $5k Prize

I know these two terms could be seen as somewhat at odds. Pharma hasn’t always been the most patient centric industry. Sure, their drugs have helped out millions of patients, but there are also plenty of examples where pharma hasn’t acted in the best interest of patients.

With this as background, it’s interesting to see this $5000 prize being offered on Innocentive for “Increasing Patient Centricity of the Pharma Industry.” The topics they suggest are: eHealth, social media, data utilization and new models to commercialize therapies. The overview of the challenge says:

Focused proposals are required describing how the pharmaceutical industry can respond to increasing demand for healthcare solutions that are better integrated with the needs and values of increasingly well informed customers (patients). Proposals should be impactful and implementable.

I must admit that I haven’t thought about this question very much. The first thing that comes to mind for me with Pharma is medication compliance. I also have thought quite a bit about the Pharma – EHR relationship. I think Pharma also has to be really careful with social media because of the laws. However, they can do a lot of listening. I wonder what opportunities are available there.

I guess that’s why I love to see these type of prize challenges. It gets you thinking about things you hadn’t thought about before.

Do you have any ideas for making Pharma more patient centric?

July 19, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 13 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Merck Investment in Physicians Interactive Holdings (Skyscape.com)

The news came out that Merck was investing up to $17 million in Physicians Interactive Holdings (better known as Skyscape.com). Here’s a section from the press release.

Physicians Interactive Holdings, Inc. the leading provider of mobile and web-based clinical resources and solutions for healthcare professionals, today announced it entered into an agreement with Merck Global Health Innovation Fund, LLC (“GHIF”) to invest up to $17 million in the Company. The financing includes an initial investment of $8.5 million and potential future investments of up to $8.5 million contingent upon achieving certain pre-specified milestones. The proceeds will be used to fund the growth initiatives of four key products and other initiatives as identified by the Board. Physicians Interactive Holdings was identified by GHIF as being on the forefront of healthcare innovation, and the investment is part of the fund’s strategy to help nurture leading global healthcare solutions.

Uh huh, nurture leading global healthcare solutions. I think this line describes what’s really in the works after they describe PIH’s clinical medical reference tools, electronic drug sampling and interactive education they say, “The solutions are blended into the clinician’s daily workflow via web, mobile and electronic health records channels…” Exactly. Is there any wonder why Merck would be interested in this type of company?

There are a lot of companies that would love to be blended into the clinician’s daily workflow. Why do you think drug companies want to find some way to access the clinician through their EHR software? It’s because the EHR software is blended into the clinician’s daily workflow. There’s no better place to advertise, market and inform someone.

January 18, 2012 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 13 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Digital Pharma East and Digital Pharma West

I meant to post about this a few weeks ago, but I was intrigued by a conference called Digital Pharma East in Philadelphia. I first noticed it, because Aaron Blackledge from Care Practice was one of the people listed to speak at it. Turns out they already have the next Digital Pharma West and Digital Pharma East on the schedule for 2012.

I’ve been traveling far too much to conferences, but at MGMA this past week I heard someone mention how much they learned from their experience attending Digital Pharma West. It’s like a whole other world out there.

The other thing that interested me about these Digital Pharma conferences is that a few of my advertisers are sponsors of the event. There’s little doubt from my experience that Pharma is trying to find its way into EMR & EHR software and other healthcare IT platforms. Although, I don’t think Pharma really knows how to do it right. I’m sure they’ll get there though. They have too much money not to make it happen.

I’ll be keeping an eye on it. I might have to get Aaron Blackledge to do a write up of his experience at the event.

October 28, 2011 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 13 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.