Verisma Systems has raised $12 million for its service that allows healthcare providers to securely manage the release of patient health record data. NewSpring Capital provided most of the money, but there also other investors participating, including Blue Heron Capital and Jim Crook, former president of IDX Systems Corp.
The company will use the funds to expand its customer base and add dozens of staff across sales, marketing, technology and management teams.
Verisma is by no means the only player in this market; its competitors include MRO Corp. as well as the market leader HealthPort, which merged with IOD Inc earlier this year.
Companies in “this market” make their money by helping hospitals provide health records to patients. Their service comes with a fee, which can be transferred to end users (patients), and in some cases, could cause a revolt.
In fact, Verisma and HealthPort have been targeted alongside hospitals in a group of lawsuits in Rochester, New York. Said suit said that the fee of 75 cents a page that the two companies charge to fulfill patients’ and providers’ requests for copies of patient records violates New York’s Public Health Law and the state’s business laws.