Medchart Raises $17M to Simplify Patient Health Data Access

The Evolution of EHR Access: Introducing Medchart

Electronic health records (EHR) have consistently been envisioned as a transformative tool for enhancing both patient care and the capabilities of healthcare providers. However, the practical realization of readily accessible and usable EHR systems has lagged behind expectations. Medchart addresses this challenge by facilitating secure health information exchange between organizations, always with explicit and informed patient consent for data utilization at scale.

The company has recently secured $17 million in combined seed and Series A funding, spearheaded by Crosslink Capital and Golden Ventures, with additional investment from notable figures including Stanford Law School and rapper Nas.

From Direct-to-Consumer to B2B Focus

Initially, Medchart began as a direct-to-consumer (DTC) platform, empowering patients with direct access and control over their digital health information. This concept originated from the personal experiences of co-founders James Bateman and Derrick Chow, who encountered difficulties in obtaining and transferring health records for family members during critical health events.

Bateman, the CEO of Medchart, clarified that their initial approach evolved as they recognized the greater scalability and effectiveness of a business-to-business (B2B) model, prioritizing informed patient consent as a fundamental element.

Empowering Patient Data Control

“Our primary focus is on the patient consent and authorization process, enabling individuals to authorize the use and sharing of their data for diverse purposes,” Bateman stated. “We are building a platform that allows businesses and services – which we categorize as ‘beyond care’ – to leverage this data effectively.”

These applications encompass areas such as legal support, insurance claims, and clinical research, with a future vision of powering innovation across a wide range of apps and services typically outside of traditional healthcare.

Addressing Data Utility Challenges

A significant hurdle in utilizing patient health data for businesses operating outside of direct care is delivering information in a format that is genuinely useful. Traditionally, this has involved extensive manual effort, such as legal professionals meticulously reviewing paper records for inconsistently formatted or located information.

“We concentrate on understanding the specific business processes involved,” Bateman explained. “This ensures that, with patient permission, we deliver ‘the information’ needed for decision-making, rather than simply providing raw data.”

Leveraging AI and Machine Learning

To overcome these challenges, Medchart employs artificial intelligence (AI) and machine learning to gain a comprehensive understanding of the data. This allows them to intelligently respond to specific inquiries from data requesters.

This capability provides long-term value, as the established understanding enables efficient querying of the data to address various business needs without repeated data parsing.

Expanding Applications Across Industries

“Our intelligence systems, built on aggregate data, are transferable to areas like life insurance underwriting and pharmaceutical research,” Bateman noted. “They can assist in evaluating policies, analyzing real-world evidence from clinical trials, and identifying indicators and pre-existing conditions to assess drug outcomes.”

The Key to Long-Term Potential

Ameet Shah, a partner at Golden Ventures, a co-lead investor in the Series A round, emphasized the importance of Medchart’s approach. “The combination of depth and breadth, along with predictability in data access, is crucial,” Shah said.

“Existing point solutions are fragmented and insufficient for requesters. Medchart’s ability to commoditize data access and reduce costs unlocks new use cases previously unattainable.”

The Impact of the 21st Century Cures Act

The recent implementation of the 21st Century Cures Act on April 5th, granting patients immediate and free access to their electronic medical records, is poised to further accelerate Medchart’s growth. This act creates significant opportunities for data portability and innovation, facilitated by informed patient consent.

“We anticipate a substantial surge in this field over the next two to three years,” Bateman predicted. “Medchart has already established the necessary infrastructure and connections to major information systems, providing data and value to users. We are well-positioned to capitalize on this accelerating adoption and growth.”