After winning over notable clients with its technology to spot diagnostic errors in radiology, Covera Health is raising funds to build out its platform. The New York-based startup recently raised $25 million in a series C funding round led by private equity firm Insight Partners, which led a previous investment in the company last year.
“An accurate radiology diagnosis is an essential ingredient in effective downstream medical care across domains as varied as heart disease, cancer, chronic pain, and musculoskeletal disorders,” Insight Partners Managing Director Lonne Jaffe said in a news release. “We’re excited to continue this journey with Covera as they harness their powerful artificial intelligence platform to transform how healthcare is measured and delivered, with the potential to benefit hundreds of millions of patients across the globe.”
Covera got its start in 2017, with the goal of reducing diagnostic errors in radiology, which can have a big impact on the type of care a patient receives. One example shared by the startup: If a radiologist didn’t describe muscle atrophy accompanying a rotator cuff tear, they could miss important information that could indicate a patient might not recover well from surgery.
In 2019, Covera launched a radiology centers of excellence program with Walmart, with the goal of steering patients toward higher quality in-network providers and reducing the wide variation in diagnoses. More recently, the startup won over Premera Blue Cross as a partner, which started offering Covera’s services as a benefit to its fully insured members and self-insured companies.
The company plans to use the funds to expand its suite of analytics products and meet the demand for its quality analytics platform.
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