Notable Raises $100M at $600M Valuation - RPA in Healthcare

Streamlining Healthcare Administration with Automation

Efficient timing is paramount in healthcare, however, diagnoses, treatments, and procedures are frequently delayed due to extensive paperwork and administrative processes. These hurdles involve numerous parties – patients, clinicians, caregivers, billing departments, and insurance providers – all requiring coordination before care can commence. Notable, a startup focused on automation solutions, has recently secured $100 million in growth funding to address this challenge, demonstrating a strong market demand for its technology.

The Scale of Administrative Costs

According to Pranay Kapadia, Notable’s co-founder and CEO, the healthcare sector allocates approximately $1.1 trillion annually to administrative expenses. This figure represents eight times the administrative spending per $1 billion of revenue compared to any other industry globally. He emphasizes the potential for automating “tens of thousands of workflows” within the current system.

Notable’s systems are currently automating “millions” of tasks each year across 350 locations, with exponential growth anticipated. While the company’s primary focus is the U.S. market, expansion plans include other regions and related sectors like health insurance.

Investment and Valuation

ICONIQ Growth, alongside Greylock, Oak HC/ FT, and F-Prime, led the Series B funding round. The investment has valued Notable at $600 million post-money. This represents significant growth from a previous valuation of approximately $120 million earlier in the year, following a prior funding total exceeding $26 million.

How Notable Works

Notable specializes in utilizing robotic process automation (RPA), combined with API integrations, to accelerate administrative tasks within healthcare. This includes managing clinical notes, processing billing details, facilitating patient registration, and coordinating other essential actions within a medical setting.

Origins and Inspiration

The concept for Notable originated from conversations with physicians, who expressed frustration with the excessive administrative burden that detracted from their core expertise. Kapadia, previously at Intuit and Blend, recognized a parallel to challenges he had addressed in the financial services industry.

The Evolution of RPA

The application of RPA to specific use cases, beyond general back-office functions, signifies the technology’s maturation. Innovative companies are now leveraging RPA to enhance efficiency in specialized fields, such as healthcare, mirroring developments seen in DevOps technology with companies like Gluware.

COVID-19 Vaccination System and Beyond

Notable gained prominence earlier this year by developing a system to streamline COVID-19 vaccination appointments, automating location finding and patient triage. The company is now observing a sustained impact, with both patients and providers seeking improved digital healthcare experiences.

The Demand for Digital Experiences

“Patients and consumers now expect touchless digital experiences,” Kapadia stated, emphasizing this expectation as “absolutely crucial.” Furthermore, tools like Notable’s are alleviating less fulfilling aspects of healthcare jobs and addressing staffing shortages.

Addressing the “Great Resignation” and Staffing Challenges

Kapadia acknowledged the “great resignation” trend but highlighted a more pressing issue in healthcare: a genuine staffing shortage. Notable’s platform is designed to alleviate workload and improve efficiency, particularly by leveraging a deep understanding of healthcare data models and workflows.

Competitive Advantage and Challenges

Notable differentiates itself from broader RPA providers like UiPath through its specialized knowledge of the healthcare industry. However, a significant challenge remains in transitioning from analogue processes and overcoming the historically limited adoption of technology in healthcare administration.

Integration and Avoiding the “Hamster Wheel”

Kapadia cautioned against the pitfalls of focusing solely on speed without addressing underlying systemic issues, warning of creating a “faster hamster wheel.” He believes a new approach to streamlining connections is essential given the ongoing consolidation of providers, the persistence of payers, and the increasing complexity of patient needs.

Provider Perspective

Dr. S. Nicholas Desai, chief medical information officer at Houston Methodist, stated, “Physicians today spend more time in front of their computer than in front of patients. By automating all of the administrative tasks that clinicians are required to perform, Notable empowers us to practice at top of license and better serve patients in our communities.”

Investor Confidence

Caroline Xie, general partner at ICONIQ Growth, expressed strong confidence in Notable, stating, “We’ve been extremely impressed by their long history of great collaboration, the talent they’ve attracted, and their unbridled passion to affect impact through exceptional technology and relentless focus on customers.” She further highlighted Notable’s AI capabilities, platform extensibility, and positive feedback from health systems regarding patient and provider satisfaction and return on investment.