Health Data Interoperability Company Diameter Health Raises $18 Million Series B

By Noah Long ● January 1, 2021
  • Diameter Health — a rapidly growing leader in health data interoperability — announced that it has raised $18 million in Series B funding led by Centene

Diameter Health — a rapidly growing leader in health data interoperability — announced that it has raised $18 million in Series B funding led by Centene Corporation with participation from existing investors Optum Ventures, LRVHealth, Connecticut Innovations, and Activate Venture Partners. Including this round of funding, Diameter Health has raised $30 million in total.

Diameter Health built a strong reputation for normalizing clinical data and transforming it into a valuable data asset via an API that enables real-time data exchange. And its leading FHIR-enabled integration engine Fusion parses, normalizes, and enriches over 225 million clinical documents on behalf of health information exchanges, the Veterans Administration, state governments, large health plans, health IT vendors as well as life insurance companies.

The funding comes at a key time of growth for Diameter Health and the U.S. healthcare market as a whole (as recent legislation outlined in the 21st Century Cures Act will accelerate increased collaboration and data sharing across the industry). This recent funding round positions the company to build on its significant momentum in the health plan and life insurance space and to advance its mission to enable data interoperability and optimization across an enterprise.

Diameter Health plans to use the funding to expand Fusion’s ingestion capabilities to accept all health messages, standards, and data sources as well as to further enhance Fusion’s real-time enrichment and analytics with machine learning capabilities like natural language processing. Plus Diameter Health also plans to expand its large network of direct connections between Electronic Health Record (EHR) systems, Health Information Exchanges (HIEs) and other healthcare data sources to enable more widespread, seamless, and secure data exchange.

KEY QUOTES:

“We are thrilled to have Centene Corporation join the Diameter Health investor syndicate in this round. This new financing validates that our technology is a valuable component to solving today’s challenges of health data interoperability across an enterprise. Normalizing, enriching, and integrating data across sources is time-consuming and expensive. Organizations are using our API to accelerate their own data enterprise strategy and are driving real cost efficiencies and value in closing care gaps, more accurately assessing risk, strengthening underwriting, and ultimately improving patient care and outcomes.”

— Eric Rosow, CEO and co-founder of Diameter Health

“We invested in Diameter Health because their ability to automatically integrate and normalize clinical data will play an important role as we look to accelerate innovation and digitization across our company.”

— Centene Executive Vice President and Chief Information Officer Mark Brooks

“Diameter Health’s growth is accelerating in the health plan markets at impressive rates. We see the company as being fundamental in supporting the use of data across digital health transactions for healthcare organizations in the future.”

— Mike Cunningham, Principal with Optum Ventures and Diameter Health board member

“With the addition of Centene, Diameter has pulled together a great group of investors. I attribute the commitments of both financial and strategic investors to overwhelming belief that we all see Diameter Health as revolutionizing the data interoperability market by becoming a foundational layer that brings together siloed data from across the healthcare industry and integrates it all into a meaningful and transformative data asset.”

— Tripp Peake, General Partner of LRV Health and Diameter Health board member