VCs to eHealthDirect: Prognosis Good
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eHealthDirect, a Lexington, Mass., developer of online health plan administration software, has raised $43.8 million in second-round financing and changed its name to deNovis.
Lead backer was 3i. First round investors Advanced Technology Ventures, Audax Ventures, Bain Capital Partners, J.P. Morgan Partners, Psilos and Utah Ventures also reaffirmed their support.
"This round of funding is a testament to our investors' confidence, and along with our name change, it marks an exciting new stage in our company as we transition into full-scale operations," said Tuan Ha-Ngoc, deNovis' CEO.
Founded in December 1999, deNovis' program helps health plans speed claims processing; introduce new, customized products; and provide members and physicians with information about benefits and contracts in plain, easy-to-comprehend language.
"deNovis is tackling a primary challenge in America today - their platform will be the most significant technical breakthrough in the healthcare technology sector in years," said William J. Oliver of 3i.
The system is currently used by two insurers, Health Net and newly signed Tufts Health Plan.
"This new technology will enable the plan to move towards a new level of service -- one where transactions will be paperless and instantaneous," said Dr. Harris Berman, Tufts' CEO. "We believe the collaboration with eHD will set a whole new standard for processing health insurance transactions."