Next Wave Health portfolio company, Health Care Dataworks, Acquired by Health Catalyst
An acquisition announced Aug. 5 brings some consolidation to the healthcare data warehousing and analytics arena. Health Catalyst, a fast-growing Utah business specializing in healthcare data warehousing and analytics, has purchased Health Care DataWorks, a privately held company that offers data warehousing tools. The cash-and-stock purchase for an undisclosed amount closed on July 31. Before the purchase, Health Catalyst customers included more than 200 hospitals and 2,000 clinics nationwide that together served over 50 million patients.HCD, a 28-employee technology spin-off from Ohio State University, is based in Columbus, Ohio. As part of the agreement, its customers, including Cedars Sinai Medical Center and MemorialCare Health System, have become Health Catalyst customers. In fact, both Cedars Sinai and MemorialCare have become investors in Health Catalyst, joining Kaiser Permanente, Partners HealthCare, Allina Health and Indiana University Health.
“Cedars-Sinai has benefited significantly from its relationship with HCD over the past few years, and we expect our partnership to deepen and strengthen as HCD merges with Health Catalyst,” said Darren Dworkin, chief information officer of Cedars-Sinai Medical Center and a former HCD board member, in a prepared statement.
Jyoti Kamal, former president of HCD, has been named a vice president of Health Catalyst. The Columbus office will remain open for at least one year.
Health Catalyst was created by a team that spent years fine-tuning the development of data warehousing in the 1990s at Salt Lake City-based Intermountain Healthcare. Once Health Catalyst spun out as an independent entity, its first customer was Allina Health in Minnesota. In January 2015 Allina Health signed a 10-year agreement valued at $100 million to combine analytics technology, clinical content and personnel with Health Catalyst. At the time, Allina said it would become a “living laboratory” and national showcase for outcomes improvement, featuring the latest developments in analytics-enabled improvement from Health Catalyst’s portfolio.
In March 2015, Health Catalyst announced it has raised $70 million in a funding round led by existing investor Norwest Venture Partners, included contributions from other existing investors Sequoia Capital, Kaiser Permanente Ventures, Sorenson Capital, CHV Capital (an Indiana University Health Company) and Partners HealthCare. Also participating in the round were new investors Sands Capital Ventures, Tenaya Capital, Epic Ventures, and Leavitt Equity Partners.
The company has raised $165 million in venture capital investments to date. Although it doesn’t disclose revenue totals, its revenue increased by 629% between 2011 and the end of 2014.
In June Health Catalyst, along with the Utah Governor’s Office of Economic Development (GOED), announced that the company would expand at its headquarters location in Salt Lake City, creating approximately 290 jobs.