“We’re trying to fundamentally change the way the US healthcare industry interacts with provider data.”
That was the lofty goal of Anshul Rathi, founder and CEO of the supplier intelligence platform CertifyOS, posed in a recent interview. All goals, of course, need financial wings to achieve liftoff, and Rathi’s company made some progress on that goal Tuesday. CertifyOS announced the closing of a $14.5 million Series A funding round led by General catalyst.
The startup was founded last year by former employees of Oscar Hello with the mission to take the stress out of the provider licensing and credentialing process. CertfyOS’ management team has experience accrediting more than 40,000 vendors over the past five years, which opened their eyes to the time and cost savings that automation can bring, according to Rathi.
“As a payer, a health system or a telehealth company, any time you contract or hire a provider, you have to go through a long process to get them on your network so they can provide care,” he said. “It takes 30-40 days and costs about $200 per supplier. Most of the time there is no API, no integration and no workflow automation. We are trying to reduce this time period to two minutes.
CertifyOS has built APIs that automate authentication, eliminating unnecessary documentation and long execution times. These services are in high demand by health systems and health care provider groups as clinical staff turnover jumped amid the pandemic. The company technology handles interstate credentialing for major types of clinicians, including physicians, registered nurses, physician assistants, nurse practitioners, and licensed clinical social workers.
The funding round isn’t the only news coming from the startup.
CertifyOS also noted on Tuesday that it has been certified as a Credential Verification Organization (CVO) by National Committee for Quality Assurance. Rathi called this certification “a major mark of growth and a mark of trust.”
CertifyOS sells its platform-agnostic technology to payers, health systems and digital health companies using a combination of SaaS fees and per-provider fees. Thirty-five clients use the startup’s authentication, licensing and enrollment software — the two largest are VillageMD and Thirty Madison.
Its competitors fit into two categories, according to Rathi. The first type are CVOs created for security and compliance, such as Symplr, Andros and Verisys. CertifyOS stands out from those companies because it’s focused on API-driven rapid automation from the ground up, Rathi said.
“This industry has remained the same for the last 30-40 years in terms of automation,” he stated. “Companies just have big offshore teams in India and the Philippines that take screenshots, put the PDF together and send it back.”
The second category of competitors Rathi pointed out are newer authentication platforms such as Verifiable and Medallion. He said CertifyOS will differentiate itself from those startups as it aims to one day become a “one-stop shop” for all matters related to provider data network management and compliance.
“We’re trying to create a backend data infrastructure that acts as the single source of truth for provider data in the US healthcare industry,” Ratty said. “We build end-to-end workflow automation for everything that touches provider data – whether it’s authentication, licensing, payer enrollment or monitoring.”