September 27, 2010
REACH Call Completes $5 Million Series A Financing
Council Ventures Leads Investment Round in Fast-Growing Provider of Telemedicine SolutionsREACH Call Inc. (REACH), a leading provider of telemedicine solutions, announced today it has completed a $5 million round of Series A financing. The investment was led by Nashville, Tenn.-based Council Ventures and was joined by co-investor Croft & Bender Capital of Atlanta, Ga., and existing investor Georgia Health Sciences University (formerly known as Medical College of Georgia) of Augusta.
Council Ventures is a private equity firm that invests in fast-growing health care services and health care information technology companies.
“There is a lot of growth capital available to health care companies, but very few professional investors have the knowledge, experience and breadth of health care industry relationships that Council Ventures brings to the table,” said industry veteran Ken Rardin, president and CEO of REACH. “I have raised more than $1 billion over my career and have learned to seek out investment partners that bring far more to the table than just capital. Council Ventures has a unique business model that is supported by successful health care business executives who are investors and are aligned with successful investment partners.”
REACH is transforming the paradigm of virtual health care by enabling specialists such as neurologists to evaluate and diagnose patients 24/7 in remote, underserved and even urban locations. REACH’s evidence-based software protocols enable clinically rich collaborations in time-critical emergency situations such as stroke, regardless of distance.
The new funding will support REACH’s continued expansion into acute care services in the burgeoning telemedicine market. REACH will grow its national sales and marketing operations and invest in R&D to expand into new clinical specialties.
“Our customers, which include small rural hospitals and some of the largest health care systems, such as HCA and Ascension, have experienced the value of our telestroke solution and are working with REACH to extend that success in other specialties,” said Nirav Desai, REACH’s vice president of marketing and product management.
Council Ventures General Partner Gary Peat said that REACH is an ideal addition to the private equity firm’s portfolio of health care companies. “What really excited us about REACH were the clinical applications that allow a specialist to provide the right care remotely to the right patient at the right time,” he said. “On top of providing higher quality care at a lower cost, the REACH network benefits all stakeholders: the patient, the hospital, the specialist and the payor.”
REACH was founded in 2006 by a group of neurology and emergency medicine physicians from the Augusta-based Georgia Health Sciences University (formerly known as Medical College of Georgia).
“Our technology is helping physicians improve the quality of stroke care every day,” said David Hess, M.D., chairman of REACH’s board of directors and chairman of the Department of Neurology at the Georgia Health Sciences University. “REACH has provided cost-effective and easy-to-use technology with comprehensive services that enable telemedicine programs to thrive.”
Rardin, who joined REACH as president and CEO in June, said that he agreed to become CEO for three reasons. “First, REACH’s model leverages a scarce resource, the specialist. Specialist coverage at urban, suburban and rural hospitals is a national issue, and getting worse every day. With REACH, specialists can immediately and affordably cover a greater number of facilities,” Rardin explained. “Second, REACH benefits all stakeholders: the patient, the specialist, the hospital and the payor. And third, I was looking for a growth company that was positioned to become the leader in telemedicine and I found all three at REACH.”
About REACH Call
Founded in 2006, REACH is a leading high-tech provider of telemedicine solutions. REACH provides a full suite of telemedicine technology and services dedicated to eliminating the geographical challenge associated with access to specialized health care, bringing time-critical emergency care for diseases such as stroke close to home. REACH offers an easy-to-implement Software as a Service platform for secure, clinically rich teleconsults, with instant documentation and reporting. REACH account teams work in partnership with customers to launch, grow and sustain their telemedicine programs. REACH serves hospitals in premier health care systems such as HCA, Ascension Health, OhioHealth and Ochsner Health System.