In a move that could significantly expand its business, Modernizing Medicine, creator of a cloud-based, specialty-specific electronic medical records system, announced Tuesday that it has acquired a California company.
Modernizing Medicine, based in Boca Raton, developed and markets the Electronic Medical Assistant, or EMA, an iOS and Android application already used by nearly 5,000 physicians in eight healthcare specialties, including dermatology, ophthalmology and orthopedics. EMA makes it easy for physicians to record notes during an exam, see past records, make a diagnosis, order prescriptions and lab work and make a report for patients all in a couple of minutes. Its purchase of Aesyntix Health, a privately held company based in Roseville, Calif., will enable Modernizing Medicine to provide billing, inventory management and group purchasing services to its physician customers in addition to EMA. Terms of the deal were not disclosed.
Aesyntix serves medical practices with three specialty-specific offerings: Aesyntix Billing Solutions for revenue cycle management, Aesyntix Inventory Management and Aesyntix Physician Network, a medical group purchasing organization.
To stand out in the crowded field of electronic health records, Modernizing Medicine’s CEO believes it is all about specialization.
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“This acquisition takes us into services that are are very different but very complementary ... and we know our clients want a one-stop shop,” said Daniel Cane, who co-founded Modernizing Medicine with Dr. Michael Sherling. “It’s further proof that the more specialized we become, the deeper and more complete our offerings can be and we can fend off larger companies that have generic offerings.”
Cane said that combining specialty-specific revenue cycle management with EMA can create more efficient, streamlined billing processes at the point of care to help reduce denials, monitor and maximize reimbursements, decrease the cost of collections and increase revenue for providers. “It means there is a single source for services, systems and support plus an opportunity for greater efficiencies and cost savings when customers choose combined offerings,” he said about the company’s first acquisition.
Modernizing Medicine, founded in 2010, recently closed $15 million of a $20 million fund-raising round, bringing its venture capital funding to date to about $50 million. The company now has 248 employees. The Aesyntix acquisition gives Modernizing Medicine a California office, and the 20 employees from Aesyntix will continue to work there, Cane said.
Modernizing Medicine also has been developing an IBM Watson-powered app, called schEMA, designed to help dermatologists offer optimal treatment options. As an enhancement to EMA, schEMA will combine the best of EMA’s big-data processing with Watson’s cognitive ability to help doctors by answering medical questions at the point of care. It’s part of IBM’s $1 billion project to bring Watson to the masses.
Follow Nancy Dahlberg on Twitter @ndahlberg.