Farmington-based Diameter Health, a hot medtech startup, announced Thursday that it raised $18 million in a Series B funding round led by managed care organization Centene Corp.
Existing investors Optum Ventures, LRVHealth, Connecticut Innovations and Activate Venture Partners also took part in the round, bringing Diameter’s total funding to $30 million.
“This new financing validates that our technology is a valuable component to solving today’s challenges of health data interoperability across an enterprise,” Diameter Health CEO Eric Rosow said in a statement. The company’s software interface integrates health data across sources to save clients’ money, strengthen underwriting and improve patient care and outcomes, he added.
“We invested in Diameter Health because their ability to automatically integrate and normalize clinical data will play an important role as we look to accelerate innovation and digitization across our company,” Centene Executive Vice President and Chief Information Officer Mark Brooks said.
Diameter Health’s main product, Fusion, parses more than 225 million clinical documents for clients including health information exchanges, the Veterans Administration, state governments, large health plans, health IT vendors and life insurance companies.
The company said it planned to use the new funding to expand Fusion’s ingestion capabilities and enhance its real-time enrichment and analytics with machine-learning capabilities, along with expanding direct connections between electronic health record systems, health information exchanges and other healthcare data sources.
Diameter Health was the recent top recipient of funding from Connecticut Innovations, the state’s state’s venture capital and lending arm, netting $1.2 million from July to September of this year.
Diameter Health also made this year’s Inc. magazine 5000 list of fastest-growing private companies in America, with Connecticut’s largest percentage revenue gain of 1,363%, comparing 2016 and 2019.