Xealth Secures $24 Million in Series B Funding

EverCommerce, a service commerce platform, announced it had acquired Medical Design Technologies (MDTech), a healthcare practice management solution that streamlines administrative workflows for physicians.

The financial terms of the acquisition were not disclosed.

MDTech said its solution is used by small and medium-sized healthcare practices across 20 different specialties and 29 states.

MDTech solutions are aimed at reducing claim denials, increasing revenues, and helping avoid unnecessary billing costs, the company said. The company’s product line includes solutions for charge capture, business intelligence, billing management, and telehealth.

According to a press statement, MDTech joins EverCommerce’s EverHealth suite, offering solutions that streamline day-to-day healthcare practice operations, improving provider and administrative workflows, and modernizing engagement with patients. EverHealth serves more than 72,000 customers with solutions for practice management, electronic medical records, patient engagement, and digital marketing.

“Running a profitable business is essential for healthcare providers. Solutions like MDTech, with charge capture and business intelligence analytics, allow practices to streamline their back-office operations so they can focus more time on direct patient care,” says Matt Feierstein, President of EverCommerce. “We’re eager to have MDTech join EverCommerce and grow our suite of complete capabilities and solutions for modern patient care.”

“With aligned missions to support the success of small to medium-sized healthcare practices, we are very excited to join the EverCommerce team and have our products be a part of a growing suite of healthcare software solutions that help providers create a modernized, streamlined healthcare environment,” said Micah Grossman, COO of MDTech.

According to Mercom’s Digital Health Funding and M&A Report Q1 2021, Healthcare practice management companies raised more than $200 million in Q1 2021. In similar deals recently,  DrChrono, a cloud-based practice management solutions provider, raised $12 million in growth capital from ORIX Growth Capital. Hospital IQ, a real-time AI-enabled operations management software platform, secured $25 million in Series C funding led by Baxter Ventures with participation from existing investors Pierpoint Capital and Allscripts.