San Francisco-based Luma Health, a patient engagement platform, raised $130 million in new financing, according to a news release Tuesday.
FTV Capital led the Series C funding round, with additional investments from U.S. Venture Partners, Texas Medical Center, Epsilon Health Investors, StartXMed, and InHealth Ventures, according to a spokesperson for Luma Health. The company plans to use the new money to launch new products, add new features to its existing platform, build new partnerships and integrations, create new service lines, hire talent and expand outside the U.S., the spokesperson said.
The company’s patient engagement platform promises to help providers and their patients navigate the entire patient journey, including patient acquisition and retention, communication, scheduling, appointment reminders, mobile patient intake and telehealth.
Luma Health has more than 500 customers, including hospitals and health systems, community health centers and clinic networks. Banner Health, Cook County Health, Franciscan Alliance and Montefiore Medical Center are among the most notable.
Healthcare executives and investors have focused more on patient engagement as consumers and lawmakers increasingly hold providers and insurers accountable for lowering costs, improving outcomes and following fair business practices. Providers have responded by investing in new infrastructure to ensure they can effectively communicate with patients to thrive in pay-for-performance reimbursement models and follow new price transparency and surprise billing rules, according to experts.
Mergers and acquisitions involving patient engagement companies spiked during the first nine months of the year, with 12 disclosed transactions, according to data from Digital Health Business & Technology. That’s up from just four during the first three quarters of 2020.