Summary: StrataPT has secured $25M in financing led by Council Capital to enhance its practice management software, which helps outpatient physical therapy clinics streamline billing and improve reimbursement rates.
Key Takeaways:
- StrataPT combines electronic medical records, revenue cycle management, and billing into a single platform, increasing efficiency and transparency for clinics.
- The company’s clients have seen nearly 100% reimbursement rates and a 42% increase in monthly insurance collections.
- The funding will support StrataPT’s growth and enable it to expand its reach in the outpatient physical therapy industry.
Today, StrataPT, a billing-aware practice management platform for outpatient therapy clinics, is announcing it has secured $25M in financing led by Council Capital. The funding comes as StrataPT experiences explosive growth led by demand for its SaaS-based platform that combines electronic medical records (EMR), revenue cycle management (RCM), billing, and collections into a single solution that helps practitioners improve cash flow and focus on patient care.
“We are on the precipice of real change as it relates to accountability and awareness in healthcare billing,” says Paul Singh, CEO of StrataPT. “Our goal is to crack open the complexities of reimbursement and streamline clinical processes with a platform that provides true transparency for the first time ever. We value our partnerships with the physical, occupational, and speech therapists we serve, and the trust they have in us enables immediate benefits and long-term impact. Council is an expert in healthcare innovation, and their support helps us extend our reach and capabilities so we can help even more clinics.”
Anecdotally, the majority of practice owners tell StrataPT that they typically only receive payments for 70%-80% of what they are owed by healthcare payers – and worse, others don’t even know how much they are owed. StrataPT has helped practices reach nearly 100% reimbursement rates, collecting $275M for them to date. The company’s revenue has increased 60% year-over-year, and its U.S.-based team has grown 75% in just the last two years.
“We understand the heartache and headaches that clinics experience with managing billing and operations,” says Kim Peacock, founder of StrataPT. “We’ve built a full-service solution for outpatient therapy practices that helps them solve critical needs without having to hire expensive staff and other third-party vendors.”
“Before StrataPT, I was essentially running two businesses: my PT practice and a billing business,” says Justin Stiver, owner of Total Therapy Florida, a leading physical therapy clinic. “With StrataPT, I can focus on growing my practice without being stuck in the minutiae of billing. It really is the only EMR and billing platform in one.”
Council Capital Partner Kevin Fahey, along with Healthcare IT industry veteran Gregory Anderson, are joining the StrataPT Board of Directors.
“StrataPT supports the business owners who are also practitioners by ensuring they easily recoup every dollar owed to them and return to a focus on patients,” says Fahey. “StrataPT’s approach is game-changing for the outpatient therapy industry and healthcare as a whole. Our mission is to invest in the right side of healthcare change, and we believe StrataPT is ushering in the next evolution of healthcare billing with its best-in-class solution for practice management and collections. Providers are looking for systems that make their job easy and get them paid. StrataPT does both exceptionally well and has the track record to prove it.”
StrataPT’s clients report up to a 42% increase in monthly insurance collections, and 99% of claims meet standards for correct coding, modifiers, structure, and formatting on the first attempt. As part of its commitment to transparency, StrataPT publishes its aggregate data and delivers analysis on reimbursement rates and insights on how states and practices compare. Check out StrataPT’s Benchmark Data and ROI calculator for more details.
Photo: StrataPT
