Irvine-based medical software company Kareo Inc. has closed a $20.5 million investment led by Stripes Group, an entrepreneurial growth equity firm. The funding will launch Kareo Billing Services, a technology-enabled revenue cycle management solution for small medical practices.
“This latest investment is another key milestone for Kareo and our efforts to deliver intuitive and affordable medical office software and services to our small practice customers,” said Dan Rodrigues, founder and CEO of Kareo. “We are looking forward to working with Stripes Group alongside our existing investors as we pursue the next exciting phase of Kareo’s growth.”
The existing online medical billing service software helps physicians in small practices schedule appointments, verify patient insurance, and receive payments, among other managerial tasks. Last year, the company doubled its revenue and its employee base. It also provided services to 16,000 medical providers using its software, increasing the physician focus on patient care rather than office management tasks.
“Stripes Group was attracted by Kareo’s unparalleled track record at building and deploying cloud-based software into the small practice medical market. The company’s growth rate over the last few years has been phenomenal and is a testament to the strength of Kareo’s ability to execute in an area where many have failed,” said Ken Fox, managing partner of Stripes Group.
Kareo has also launched the Kareo Medical Billing Partner Program. The program is targeted to the 600 billing companies that use Kareo’s software. These companies can take advantage of the new benefits and support of this program designed to help them grow their businesses and enhance relationships with customers.
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