Boca Raton health technology company Modernizing Medicine announced a $231 million investment from the New York-based private equity firm Warburg Pincus.
The fast-growing company, which has developed an electronic medical records and data business, said the new funding would provide further expansion.
The investment “means continued growth — more hiring and increasing the innovation in specialties today,” said Dan Cane, co-founder and CEO.
Modernizing Medicine, with its headquarters located in the Research Park at Florida Atlantic University, already has raised $87 million. The company employs 550 people and recently opened a second location at Boca Innovation Campus, the former T-Rex campus in western Boca Raton .
The company’s systems are used by 10,000 physicians in all 50 states, with a focus on four specialties: dermatology, gastroenterology, orthopedics and ophthalmology. Cane said the company has an annual run rate of $100 million in revenue.
“There’s plenty of room to build,” Cane said.
Cane said Modernizing Medicine helps physicians to be more efficient in managing their offices, including insurance prior-authorization, using telemedicine and providing easier access for patients to prescriptions and over-the-counter drugs.
“That’s a global shift. Now our big focus is around the patient — on mobile devices access records and telemedicine experience; more information and power down to the patient,” he said.
The company was founded in 2010 by Cane and Dr. Michael Sherling. Its flagship product is EMA, a mobile cloud-based electronic records system used by thousands of specialty physician practices nationwide.
As result of the new investment, Warburg Pincus’ managing director Fred Haasan and principal Amr Kronfol will be joining Modernizing Medicine’s board, the company said. Cane said the new board members’ industry experience will help grow the company. Haasan is former CEO and chairman of the pharmaceutical giant Schering Plough and executive chairman of Bausch & Lomb.
Kronfol said the private equity firm sees “meaningful opportunities for the company’s continued growth and acceleration of existing products and initiatives.”
Dr. Jerry Obed said Modernizing Medicine has helped his Broward Dermatology & Cosmetic Specialists practice in Fort Lauderdale become an almost paperless office. Practicing for five years, Obed said he easily adapted to the iPad system for keeping medical records — since he didn’t have any file cabinets.
The board-certified dermatologist especially likes the ability to photograph patients’ skin issues with the app. Using Modernizing Medicine’s systems ultimately results in “better patient care,” he said.
Modernizing Medicine was founded in 2010 and had just 60 employees five years ago. “South Florida has a great talent pool to draw from,” Cane said, adding that a frequently cited complaint among investors about a dearth of talent in the region “just isn’t true.”
“We’ve never slowed down,” Cane said. With the investment, the company plans to add “dozens and dozens” of additional employees.
Modernizing Medicine also hasn’t been affected by efforts in Congress to replace Obamacare.
“We’re a few degrees removed from provider services. Our specialties’ demand will exist after Obamacare,” he said.
mpounds@sunsentinel.com or 561-243-6650, twitter: @marciabiz
