As the federal government turns its eye to nationwide health-care reform, HealthEdge Software Inc. feels itself on the brink of a big opportunity. The Burlington-based company makes software designed to allow health insurance companies to nimbly tailor policies and procedures based on an individual’s changing health-care needs. The company has just signed its sixth and seventh customers, most of which are companies replacing decades-old back-end software systems, said COO Ray Desrochers.
“We’ve been talking about these things for quite a few years — I think before they were in vogue,” he said. “Now, all of a sudden, reality has hit home; people are saying we need to do this.”
A Massachusetts state government panel last week released recommendations that insurers be required to replace their existing fee-for-service payment system with a “global” system, which would compensate providers in advance for care that patients would likely require over an extended period. HealthEdge’s software would allow insurers to adapt to such a requirement, Desrochers said.
HealthEdge just received a $3.5 million tranche, the third installment of a $13 million dollar commitment from its sole backer, New York private equity firm Psilos Group, which Mass High Tech originally reported closed last April. The funds are added to $14.6 million the company had previously raised. HealthEdge expects to achieve profitability by the middle of next year, Desrochers said.
HealthEdge’s software, which is based on a configuration technology the company bought from deNovis Inc., an earlier startup that burned through $125 million in venture capital over four years, before shutting its doors in 2004.
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