THL leads $50M growth investment in Qventus
Thomas H. Lee Partners led a $50 million growth investment in Qventus, whose software automates operational decisions across large health systems, community hospitals and academic medical centers, the parties tell Axios.
Why it matters: The pandemic-fueled labor crisis has added pressure to already resource-constrained hospitals, underscoring the need for greater operational efficiencies.
- Technology that automates patient flow is one solution to reducing unnecessary costs, improving patient experience, optimizing hospital capacity and decreasing provider burnout.
What they're saying: Doctors and nurses have been "the glue" holding the health care system together amid advances in medicine and treatment, but operational processes have not kept up, CEO Mudit Garg tells Sarah.
- “If you go anywhere across the world with a complex problem you come to the U.S., yet the experience of any average patient is far from the best," Garg says. "It’s such a dichotomy [for each to] exist simultaneously.”
- The capital injection will help Qventus both reach more providers and expand on top of existing AI-based offerings, he says.
Yes, and: Premier Inc., a health care improvement company, is both partnering and investing alongside THL.
- The company's vast data sets and some 4,400 hospital alliances will support Qventus' go-to-market strategy while complementing its tech platform.
How it works: Qventus applies AI and machine learning tools to simplify decision making and remove bottlenecks.
- The company claims its software reduces excess days in the hospital by 30% to 50%, decreases length of stay by up to one full day, and generates two additional cases per operating room per month.
- In 2021, Qventus says it eliminated over 200 years of excess days in the hospitals.
By the numbers: The THL-led investment brings the Mountain View, California-based company’s total funding to date to $93 million, Garg says.
- THL is investing through its dedicated automation fund, which closed in 2020 on $900 million.
- Joining THL and Premier in the investment are Thedacare, Bessemer Venture Partners, Mayfield Fund and Norwest Venture Partners.
The bottom line: Automation in health care is gaining steam, but there's still a long way to go.
- Most automation in health care has centered around the back office, with tools aimed at time and attendance or payroll, for instance.
- Qventus represents the evolution of automation-focused companies in the non-clinical care operations bucket, which also include companies focused on patient and provider communications, as well as supply chain processes.
- "There's sufficient space to not only build one but many public companies" of this vein, Garg says.
Editor's note: This story has been corrected to reflect that Premier has 4,400 hospital alliances, not 44.