LeanTaaS becomes the first HealthTech unicorn of 2023 following the acquisition of Hospital IQ
With healthcare reform, an aging population, and an increasing number of new cancer diagnoses each year, the demand for healthcare services continues 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, hospitals and health service organizations 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.
Today, the Goldman Sachs-backed HealthTech startup LeanTaaS announced it has acquired Hospital IQ, creating a combined company valuation now exceeding $1 billion and marking the first new digital health unicorn in 2023, and making the startup a new member of the highly-coveted unicorn club.
The deal also creates the largest AI-powered hospital operations software provider in the healthcare technology industry powering intelligent operations across more than 180+ U.S. health systems and 500 hospitals in 43 states. The news of the acquisition comes after Bain’s recent investment in LeanTaaS, and advances the company’s mission to become the “air traffic control center” for health systems.
The acquisition also combines the strengths of the two companies. Hospital IQ has complementary strengths in workflow automation for inpatient flow and surgery, dynamic capacity and workforce management to meet patient demand, and deep existing partnerships with multiple technology providers, including Oracle Cerner, Altera Digital Health (formerly part of Allscripts), and Siemens Healthineers.
Together, LeanTaaS and Hospital IQ will drive improved patient access, staff satisfaction, and revenue productivity by solving thorny issues in multiple departments, including the infusion suite, operating room, and inpatient units, around capacity management and staffing shortages.
Hospital IQ was founded in 2013 by Richard Krueger and Tim Vasil. The Newton, Massachusetts-based startup is one the leading provider of intelligent automation solutions for hospitals. The acquisition values the combined company at more than $1 billion in enterprise value.
“We are thrilled to welcome Hospital IQ, a company that shares our passion and expertise for operational optimization in healthcare. The strategic combination of LeanTaaS and Hospital IQ unites the two best companies in hospital operations at a time of profound industry need,” said Mohan Giridharadas, LeanTaaS founder and CEO. “Every health system in the country has an urgent need to improve the utilization of both staff and assets to improve patient access. By joining forces, we will be able to offer our customers an unparalleled platform for optimizing their operations and improving patient care.”
We first covered the startup back in 2019 after it raised $40 million from Goldman Sachs to optimize hospital and health clinic operations with AI.
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.