$5 million for a PMS and Revenue Cycle Management

I’d been meaning to post this for a while. It’s the news that the company CareCloud got a $5 million round of financing after their initial $2.3 million round of financing. Here’s the description of Care Cloud from the Techcrunch post:

A cloud-based app suite, CareCloud attempts to modernize the process of being a healthcare provider; physicians can use CareCloud’s web-based apps to streamline the managing of their businesses as well as collaborate with other doctors in the CareCloud’s healthcare provider social network.

The interesting part of this to me is that when I visited the CareCloud website it seems that they are basically a PMS and Revenue Cycle Management company. That seems like a lot of funding for such a niche.

The website does mention the healthcare provider social network which kind of sounds like a health information exchange, but really doesn’t give any details of how CareCloud plans to connect all these doctors together. Plus, without an EHR software or connections to other EHR software, what information are they planning to share?

I guess I’m still trying to get the vision of what $2.3 million was spent on initially and where they plan on spending the next $5 million. That’s a lot of cash if they’re just going to be a PMS and Revenue Cycle Management company. Of course, maybe they just need to spend some of that $5 million and update their website to portray what they’re really trying to do.