See the 29-slide pitch deck that a digital health startup used to raise $24 million entirely from its hospital customers

Telemedicine online doctor appointment
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  • Xealth sells software for prescribing services like remote patient monitoring or health apps.
  • The company raised $24 million in a Series B round led by Advocate Aurora Health's enterprise arm.
  • Xealth is betting that tech-based therapies and remote patient monitoring will continue to surge.
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Software company Xealth sells tools doctors can use to order and prescribe digital health services, like remote patient monitoring or educational material.

And it's those hospital customers that drove the startup's latest $24 million funding round, bringing total funding to $52.5 million. Advocate Aurora Enterprises, a subsidiary of the 15-hospital system Advocate Aurora Health, led the round.

Xealth CEO Mike McSherry
Xealth CEO Mike McSherry spoke with Insider about the pitch deck that scored the company a $24 million Series B. Xealth

Xealth stitches together digital services from disparate vendors, making it easier for doctors to order them directly from electronic health records systems. It also recommends apps that could be helpful for specific patients, a particularly useful service, Advocate Aurora Enterprises president Scott Powder told Insider. 

The pandemic's rapid transition to virtual care boosted health systems' interest in Xealth, CEO Mike McSherry said. And the company expects hospitals will only continue to ramp up digital health investments, he said.

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"What we're building ourselves towards is that inevitability that a there's the need for a digital health platform to aggregate the different range of apps, devices, tools, services," McSherry said.

The goal, he added, is to be a consistent standard across health systems.

Seven new health systems participated in the round: Banner Health, ChristianaCare, Cone Health, Memorial Hermann, Nebraska Medicine, Novant Health, and Stanford Health Care. Existing health system investors including Cleveland Clinic and Providence also participated. 

Xealth gave Insider a look at the pitch deck it used to raise the funds. It has been edited to remove some financial information. 

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Seattle-based Xealth aims to help doctors order and use digital services with their patients. It spun out of Providence in 2017.

A slide from Xealth's Series B pitch deck
Xealth
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Xealth can help doctors sending educational materials to patients, prescribe apps and digital programs, and monitoring data from wearable devices.

A slide from Xealth's Series B pitch deck
Xealth

Investments have largely come from health systems who already use the technology, but IT companies like Cerner are also backers, McSherry said.

A slide from Xealth's Series B pitch deck
Xealth
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A large part of Xealth's pitch to hospitals is its ability to do much of the back-end integration, meaning that clinicians can order up digital services for patients more easily.

A slide from Xealth's Series B pitch deck
Xealth
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These are the vendors whose services Xealth already includes, including Amazon's product recommendations, McSherry said.

A slide from Xealth's Series B pitch deck
Xealth

Xealth is also designed to help doctors and nurses remotely monitor patients' health and to funnel their data into health records.

A slide from Xealth's Series B pitch deck
Xealth
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Doctors can use Xealth to order digital prescriptions through their health records systems. The system can recommend certain services based on a specific event or patient profile.

A slide from Xealth's Series B pitch deck
Xealth

Xealth also lets clinicians email, text, or send portal notifications to patients nudging them to access their prescribed digital services.

A slide from Xealth's Series B pitch deck
Xealth
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Xealth's software lets patients enroll in or access digital programs.

A slide from Xealth's Series B pitch deck
Xealth

Health systems nationwide report that video telehealth visits are declining compared to their peak in spring during the pandemic last year, but McSherry told Insider he expects remote patient monitoring to surge.

A slide from Xealth's Series B pitch deck
Xealth
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Xealth's remote patient monitoring dashboard lets multiple clinicians observe different types of health data from the same patient at once.

A slide from Xealth's Series B pitch deck
Xealth

Xealth's technology an automatically order apps them based on specific triggers from the health record system.

A slide from Xealth's Series B pitch deck
Xealth
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Advocate's Powder told Insider that aggregated data about which digital health services patients are using could health systems help assess their value.

A slide from Xealth's Series B pitch deck
Xealth

Xealth also aims to collect and analyze data from health records — whether it's demographic, clinical, or insurance information — as well as from other apps and services like weight and diabetes management system Livongo.

A slide from Xealth's Series B pitch deck
Xealth
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From electronic health records to access through apps and custom portals, Xealth integrates data from different vendors.

A slide from Xealth's Series B pitch deck
Xealth

In its presentation to investors, Xealth outlines its process, including the triggers that might prompt the software to recommend specific digital health products.

A slide from Xealth's Series B pitch deck
Xealth
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Xealth also supports a wide range of use cases, including helping doctors order and deliver pre-surgery prep kits to patients.

A slide from Xealth's Series B pitch deck
Xealth

Xealth says its customers save on information technology and information services costs and time, and that more than half of patients engage with the technology.

A slide from Xealth's Series B pitch deck
Xealth
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The digital ordering system gives clinicians — not insurers — more control over patients' care, Xealth says.

A slide from Xealth's Series B pitch deck
Xealth

That could enhance patients' relationship with their doctors and potentially build trust, Xealth says.

A slide from Xealth's Series B pitch deck
Xealth
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The remote patient monitoring dashboards can keeps patients in the loop about their own health data, according to Xealth.

A slide from Xealth's Series B pitch deck
Xealth

Xealth pegs the total addressable market — an estimate representing demand or total revenue opportunity — at $1.3 billion.

A slide from Xealth's Series B pitch deck
Xealth
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Individual health systems might see results in terms of increased patient engagement and clinical efficiency, among other benefits.

A slide from Xealth's Series B pitch deck
Xealth
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Future opportunities include clinical prescriptions of apps focused on the most expensive health conditions. Xealth said its platform is currently available to 100,000 physicians.

A slide from Xealth's Series B pitch deck
Xealth

Xealth now has more than 50 employees, and it's hiring "ahead of the curve," McSherry told Insider.

A slide from Xealth's Series B pitch deck
Xealth
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Xealth started out targeting larger health system customers. But it'll soon start chasing mid-market and smaller systems, McSherry said.

A slide from Xealth's Series B pitch deck
Xealth
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