StrataPT, a billing-aware practice management platform for outpatient therapy clinics, announced it raised $25 million in financing led by Council Capital. This funding round comes as StrataPT experiences substantial growth, led by demand for its SaaS-based platform, which 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.
Generally, the majority of practice owners tell StrataPT that they usually only receive payments for 70-80% of what they are owed by healthcare payers, and others don’t know how much they are owed. StrataPT helped practices reach nearly 100% reimbursement rates, collecting $275MM 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.
StrataPT’s clients report a 42% increase in monthly insurance collections, and 99% of claims meet standards for correct coding, modifiers, structure, and formatting on the first attempt. And 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.
Council Capital Partner Kevin Fahey, along with Healthcare IT industry veteran Gregory Anderson, are joining the StrataPT Board of Directors.
PEAK Technology Partners served as StrataPT’s financial advisor.
KEY QUOTES:
“We are on the precipice of real change as it relates to accountability and awareness in healthcare billing. 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.”
-Paul Singh, CEO of StrataPT
“We understand the heartache and headaches that clinics experience with managing billing and operations. 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.”
-Kim Peacock, founder of StrataPT
“Before StrataPT, I was essentially running two businesses – my PT practice and a billing business. 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.”
-Justin Stiver, owner of Total Therapy Florida, a leading physical therapy clinic
“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. 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.”
-Council Capital Partner Kevin Fahey
