The Medical Capital has experienced rapid growth in the health information technology sector. In the past five years, $414 million has been invested in health IT and services companies in the Cleveland region and more than 42 companies have been launched. The health IT industry generates a significant number of jobs and significantly impacts critical areas such as healthcare cost reduction and improvement of patient care.
Money continues to flow into the sector from equity investors, some of which have funds solely dedicated to health IT investments. OnShift, a provider of web-based staff scheduling software for the long-term care industry, recently raised $18 million in Series D financing, led by Health Velocity Capital, to finance its rapid growth.
CoverMyMeds, a leader in electronic prior authorization, was recently acquired by McKesson for $1.1 billion. This deal marks Ohio’s first “unicorn,” a private tech company valued at more than $1 billion. Explorys, which spun off from Cleveland Clinic in 2009, was also acquired and is a part of IBM’s Watson Health Unit. Explorys takes mountains of data from electronic records and makes meaningful sense out of them, taming Big Data in a novel way that can truly transform healthcare. The company remains in The Medical Capital, giving IBM a foothold in Northeast Ohio.
The Healthcare Information and Management Systems Society (HIMSS), a leader in healthcare IT, now leases the entire 4th floor of the Global Center for Health Innovation, the HIMSS Innovation Center, dedicating it to improving healthcare access, outcomes, and reducing costs through the implementation of information technology across the entire spectrum of health care delivery.
In response to the growing health IT industry, the HIT in the CLE talent initiative was formed. The program aims to help young people in Northeast Ohio acquire skills necessary to fill HIT Software Developer and HIT Data Scientist positions.