ehr startup canvas medical raises $17m and partners with insurance heavyweight anthem
Canvas Medical Secures $17 Million in Series A Funding and Partners with Anthem
Canvas Medical, a startup focused on electronic health records (EHR), has announced a $17 million Series A funding round. This investment accompanies a new strategic partnership with Anthem, a leading health insurance provider nationwide.
Funding Details and Company Overview
Inspired Capital and IA Ventures co-led the funding round, with additional participation from Upfront Ventures. This latest investment brings the total funding raised by the company to $20 million.
Founded in 2015 and based in San Francisco, Canvas Medical is dedicated to streamlining the delivery of value-based care for physicians. Their EHR platform is designed for efficiency, promising a significant reduction in clicks and faster workflows.
According to Andrew Hines, CEO and founder of the company, the platform offers “80% fewer clicks, 3x faster workflows, and the ability to truly work on one screen.”
The Shift Towards Value-Based Care
Value-based care represents a healthcare delivery model where providers are compensated based on patient health outcomes. This contrasts with the traditional fee-for-service model, where reimbursement is tied to the number of patient visits.
Over recent years, the U.S. healthcare system has been transitioning towards value-based care, influencing how physicians are reimbursed for their services. Consequently, established EHR companies are compelled to enhance their platforms with additional features.
This expansion, however, can negatively impact the physician’s workflow experience. As noted by Steve Strongwater in Catalyst, a publication of the New England Journal of Medicine, clinicians are increasingly required to function as complex coders.
Strongwater, who is also a physician and the CEO of Atrius Health in Boston, points out that current systems often present cluttered screens that are not optimized for usability.
Addressing Physician Burnout and Workflow Challenges
“Current EHRs are a workplace hazard from an ergonomics perspective,” Hines stated. He likened the experience to prolonged discomfort from using an ill-fitting chair.
Despite technological advancements simplifying many professions, the same cannot be said for doctors. Research indicates that EHRs contribute to physician burnout in the U.S., a growing national concern.
Improving Data Accessibility and Interoperability
The EHR market is highly fragmented, with hundreds of companies operating in the U.S. This fragmentation creates challenges in sharing patient medical records between different physicians.
Health insurance claims contain valuable medical data, making insurance companies a reliable source of information about their members. However, doctors often need to access this data for treatment purposes, requiring them to log into separate portals or access different reports for each patient’s insurance plan.
Canvas Medical aims to resolve this issue, and their partnership with Anthem represents a significant step in that direction.
Demonstrating Value and Driving Adoption
Changing EHR systems can be a complex and costly undertaking, often leading to resistance. Hines, with a background in data science, emphasizes that the company addresses these concerns by focusing on quantifiable results.
“Doctors who use Canvas experience 30% more productivity in the first month and are able to save 1-2 hours a day charting — which allows them to see more patients or go home early,” Hines explained.