LeanTaaS secures $40M from Goldman Sachs to optimize hospital and health clinic operations with AI
With healthcare reform, an aging population, and an increasing number of new cancer diagnoses each year, the demand for healthcare services will continue to rise. At the same time, pressure from payers to improve efficiency means that providers cannot increase capacity indefinitely by building new facilities or hiring additional staff.
Instead, they will need to use sophisticated optimization methods to match the growing demand for healthcare services with the operational constraints imposed by their existing assets (people, rooms, equipment). That’s where LeanTaas comes in, a Silicon Valley software startup whose offerings rely on advanced data science to significantly improve the operational performance of hospitals and clinics.
Yesterday, LeanTaas announced it closed a $40 million Series C3 round of financing from Goldman Sachs’ Merchant Banking Division. The investment by Goldman Sachs is in addition to the $61 million previously invested by Insight Partners over the three prior funding rounds beginning in November 2017, bringing the total amount raised within the last 24 months to $101 million.
Founded in 2010 by Mohan Giridharadas, LeanTaaS provides software solutions that combine lean principles, predictive analytics, and machine learning to transform hospital and infusion center operations. Using LeanTaaS iQueue in conjunction with its existing EHR’s, healthcare institutions are developing optimized schedules that are tailored to each site and can rapidly reduce patient wait times and operating costs while increasing patient access and satisfaction, care provider satisfaction, and asset utilization. “We’re not doing clinical optimization, but we’re trying to do operational excellence,” said Mohan Giridharadas, CEO and founder of LeanTaas.
Approximately 80 health systems across the nation rely on the company’s iQueue cloud-based solutions to increase patient access, decrease wait times, reduce healthcare delivery costs, and improve revenue. LeanTaaS is based in Santa Clara, California, and Charlotte, North Carolina.
LeanTaaS uses lean principles, machine learning, and predictive analytics to digitally transform core operational processes to increase patient access, decrease wait times, improve staff satisfaction, reduce healthcare delivery costs, and improve operational performance. LeanTaaS’ cloud-based iQueue platform uses sophisticated optimization algorithms to match the demand for expensive healthcare resources — operating rooms, infusion chairs, ambulatory clinics, imaging assets, inpatient beds — with the availability of supply, taking hundreds of real-world operational constraints into account. The algorithms continuously learn by comparing the expected versus the actual operational performance in order to ensure that the impact is sustained well into the future.
“LeanTaaS has developed a powerful prescriptive analytics platform that helps bend the access and cost curves in health systems, enabling customers to achieve tangible operational improvements,” said Antoine Munfa, a managing director with Goldman Sachs’ Merchant Banking Division. Paul Pate, a vice president with Goldman Sachs’ Merchant Banking Division, added, “LeanTaaS delivers its platform as scalable, web-based software which can be configured to serve a wide array of healthcare environments.”
“LeanTaaS’ iQueue represents a rare nexus of product leadership, robust ROI, and fast time to value for hospitals. As software-focused investors, we have found the product’s impact on customers to be very impressive in general, but in particular considering how hard it is to deliver value with true SaaS products in healthcare environments,” said Peter Segall, former healthcare IT CEO and now managing director at Insight Partners.
The financing will fund the continued expansion of the LeanTaaS iQueue platform, which currently consists of three solutions: iQueue for Infusion Centers, iQueue for Operating Rooms and iQueue for Clinics. The funding will also significantly accelerate the hiring of key leaders in roles throughout the company including engineering, data science, product management, sales, and marketing. LeanTaaS has nearly doubled the size of its team in 2019 by hiring more than 85 people in the last 10 months including experienced leaders from Rally Health, GE Centricity, Epic, Cerner, and Lehigh Valley Health Network.
“With Goldman Sachs and Insight Partners as our two major financial investors, we continue to strengthen our access to an incredibly diverse set of resources including expertise, network and funding to accelerate the pace at which we help hospitals and healthcare providers bend their access and cost curves,” said Mohan Giridharadas, founder and CEO of LeanTaaS.