Hospitals seek more health transaction advisors
HCA Health Services announced it has raised $5.5 million in Series C funding led by Accel Partners.
The firm is seeking an additional $5 million to expand its medical device and biotechnology products offerings, according to a regulatory filing.
The deal is the second round for the San Diego-based company, which is looking to accelerate its growth with more acquisitions.
It’s unclear if the funds are part of the company’s current $2.5 billion Series A funding round or additional acquisitions.
The company plans to launch a new product in the first quarter of 2019, said Jeff Raskin, HCA’s chief executive officer.
He said the new product would target “the emerging markets” where HCA has an existing product, such as in the U.K., the U and Germany.
“We believe this new product will help to accelerate HCA and accelerate our overall business, and is a great addition to the growing company,” Raskins said in a statement.
HCA, which has over 1,300 hospitals in 50 countries, is aiming to bring more doctors and nurses on board to its service, said Raskas.
“Our goal is to build a better and more efficient health care experience for patients, and we believe that by bringing on more experts to help us deliver on this mission, we will be able to achieve that,” he said.
The healthcare provider has struggled to attract doctors to its network and it’s unclear how much more it can invest in its growing network of doctors.
HCL Healthcare, a medical device company, has raised nearly $2 billion in a Series C round led by SoftBank, with the company planning to use the funds to build more devices and to expand into other medical devices.
In July, HCL announced it was expanding its network of more than 700 physicians and researchers to include new doctors, including from hospitals and universities, and also to include specialists from its clinics.
It has also expanded its network into other sectors of the healthcare system.
Health Care and Hospitals Association CEO Greg Lafferty said that while the hospital sector has historically been dominated by the medical device companies, the sector is rapidly growing.
“There’s a lot of demand from hospitals,” he told CNBC.
“And we’re seeing that demand, especially in areas like healthcare.”
The healthcare industry is seeing an unprecedented number of hospitalizations, and a growing number of health care transactions.
In the past year, healthcare transaction advisory firms have raised more than $6 billion, according the American Hospital Association.
Healthcare transaction firms such as Medscape and Cigna have raised over $5 billion in Series B and C financing.
“HCA and its advisors have a proven track record of bringing top-quality healthcare advisors to patients, providers, and policymakers across the United States and around the world,” said Cignas chief executive Officer John C. DeFusco in a release.
“The HCA Healthcare Transaction Advisors will help the company and our advisors reach our customers with the best solutions, including better value, better value for their patients, more patient satisfaction and more patient engagement,” DeFussco added.