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Pictured above: Governor Quinn announces Valence Health's plans to hire 500 new employees
Valence Health, a healthcare consulting and technology company, has just raised a new $15 million round. Despite being nearly 20 years old, the company has lately been raising big sums, hiring large amounts of new employees, and growing rapidly. In August, the company said its revenues in the first half of 2014 were up 51 percent compared to that period a year earlier.
“We’ve been steadily growing and investing in our infrastructure since our inception in 1996,” said CEO Phil Kamp in a statement. “This latest round of investment allows us to accelerate our efforts to reach more providers who are pursuing various approaches to value-based care. More specifically, we will use the funds to invest in additional software development, sales and marketing, and client management resources.”
In recent years, Valence has been growing rapidly. In 2014, the company added more than 150 new employees and will be moving into a new Chicago headquarters soon. In August, the company announced plans to hire 500 employees for its Chicago headquarters over the next five years.
Valence focuses on so-called “value-based care:” delivering cost-efficient healthcare and catering to the desires of patients. That is important because the healthcare industry has not been focused on value for money in years. In fact, spending on healthcare has been high in the United States for decades, yet there has been a lack of significant improvement in treatment results. In particular, fee-for-service based healthcare systems that rely on health insurance as a blank check have driven up costs. Valence’s value-based care consulting and the technology it uses to implement its methods promises to restrain that system’s tendencies and to produce better outcomes.
Also, because hospitals are complex organizations that are heavily regulated, human capital intensive Valence is paid to consult on projects and provide long term services, such as value-based consulting and actuary services. Its robust list of services and technology is in part why investors found Valence attractive.
“Valence Health offers technology, consulting and outsourced services all under one roof to help clients at all stages of their value-based journey,” said Doug Kingsley, managing director of North Bridge Growth Equity. “This means that Valence Health can meet all of a client’s value-based care needs, saving them the time, money and risk of stitching together various point solutions.”
Valence’s $15 million investment round was led by Heritage Group, and included Foundation Medical Partners, GE Ventures, and North Bridge Growth Equity. In June of 2012, the company also raised a $30 million round.
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