Azalea Health has closed a USD10.5 million series B round of funding led by Kayne Partners, the growth private equity group of Kayne Anderson Capital Advisors, an alternative investment firm managing over USD22.5 billion in assets.
Existing Azalea investor Intersouth Partners, a venture capital firm in Durham, NC, also participated in the round.
Azalea Health is a provider of fully integrated, technology-enabled healthcare solutions and revenue cycle enhancement services for practices of all sizes and most specialties.
"The additional capital allows us to rapidly advance organic growth and consolidate the market through acquisition," says Justin Pierce, vice president of sales.
“We are very pleased with this opportunity to partner with Kayne Anderson, a like-minded, technically focused equity provider that has a strong track record within the health IT space,” says Baha Zeidan, CEO and co-founder.
“Now more than ever, hospitals and physicians need tools that deliver a strong ROI, streamline workflow, and are easy to adopt and use. With payment reforms focused on achieving outcomes and lower costs, healthcare organisations require a comprehensive end-to-end platform that supports every aspect of their practice.”
Nishita Cummings, partner, Kayne Partners, adds: “Kayne strives to identify companies with unrivalled competitive advantages in fast-growing industries which are led by exceptionally strong management teams. Azalea is solving unique healthcare access and delivery needs in the US rural healthcare market. We recognise this is a significant growth opportunity for Azalea and believe they are uniquely positioned to take advantage of these opportunities.
Cummings will join the board of Azalea Health.
Azalea Health focuses on rural markets that are traditionally underserved by healthcare technology. The company is able to cost-effectively meet the needs of community and critical access hospitals, including Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs), as well as their associated physician practices.
Approximately 20 per cent of the US population lives in rural areas, but only 10 per cent of US physicians practice there. This disparity creates unique healthcare access and delivery challenges for patients, caregivers and physicians ultimately resulting in significant costs to the healthcare system.
Azalea Health is the first company to fully integrate telehealth capabilities within its technology-enabled solutions platform, which includes integrated electronic health records (EHR), practice management, electronic prescribing, interoperability services, personal health records, patient portal, Azalea M mobile platform integrated with Apple HealthKit and Revenue Cycle Performance services.
Victor Culiuc and Healthios Capital Markets served as exclusive financial adviser to Azalea.
