Xealth raises $24M to help doctors utilize digital health apps

This morning Xealth, a startup that aims to help doctors prescribe digital health apps, closed a $24 million Series B funding round. 

This comes more than two years after the Providence St. Joseph Health spinoff closed an $11 million Series A funding round. As of today, the company boasts of $52.6 million in funding. 

Advocate Aurora Enterprises led the round with participation from Banner Health, ChristianaCare, Cone Health, Memorial Hermann, Nebraska Medicine, Novant Health, Stanford Health Care, Atrium Health, Cleveland Clinic, Froedtert & MCW Health Network, MemorialCare Innovation Fund, Providence and UPMC. 


Xealth is focused on incorporating digital tools into a doctor’s workflow. The company is integrated with EHRs and is designed to help clinicians find and order digital tools for their patients. Patients are able to access the prescribed tools on their patient portal. 

Clinicians are also able to use the platform to monitor a patient’s engagement and success with different tools. 


Xealth is looking to use the money to build out its team. In fact, it is looking to double its size. Additionally, the money will go toward building up and deploying its product. 

“Digital health use is accelerating and can be a key driver of growth for hospital systems,” said Mike McSherry, CEO and cofounder of Xealth. “The support from leading health systems, including Advocate Aurora, as well as The Health Management Academy, validates our approach to incorporating digital health in ways that empower both providers and patients and will elevate our growth, taking our technology vision to the next level and creating a personalized care experience that deepens the connection between patients and clinical care teams.”


As more digital tools emerge, there are still often many hurdles for doctors to prescribe the tools. In 2016, Kaiser Permanente launched Project Chamai, an internal effort to address patients entering the system with behavioral health needs. As part of the project, the team developed an ecosystem of convenient mobile apps that a clinician is able to suggest to a patient to supplement their care. 

Also in 2016 Mount Sinai launched RxUniverse, a system-wide platform that helps doctors prescribe digital tools to patients. 


“The future of healthcare is using innovative technology to help people take control of their health beyond traditional care settings,” Advocate Aurora Enterprises President Scott Powder said in a statement. “That’s why we invested in Xealth. The company’s focus on connecting a broad array of health solutions to the consumer aligns with ours, as we seek to invest in industry pioneers who are helping people live well at all stages of life.”



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