Matthew Cox Courtesy Spectrum Health
A local health-focused venture capital fund led the initial seed capital fundraising for a company developing software meant to increase the efficiency of health care practitioner credentialing.
Tampa-based Professional Credentials Exchange (ProCredEx) raised $3.3 million in initial capital, an effort led by Spectrum Health Ventures, the venture capital arm of Grand Rapids-based Spectrum Health.
The company developed a digital marketplace to provide a solution for credentialing organizations to readily and securely share, exchange and monetize their credential verification data, which will lead to decreased time and effort in onboarding new health practitioners.
Credentialing involves the mandated processes of ensuring an individual practitioner meets the standards for education, training, certifications, work experience and prior performance, the company said.
Because workers have to manually verify each piece of information and then validate it internally, the process can take four to six months and cost hundreds of thousands of dollars for each new practitioner, the company said.
"For too long, we have forced credentialing to be performed in a way that requires credentialing professionals to resort to dated, time-consuming methods of performing their work,” said Matthew Cox, CFO of Spectrum Health.
“ProCredEx provides these individuals with a secure tool to both immediately acquire this information from accredited exchange members and resell the data they have worked to verify themselves to other organizations needing this information.”
ProCredEx formed two years ago as a joint venture between Hashed Health and Tenon Consulting Solutions.
The firm is launching a statewide pilot in Michigan with plans to expand to several additional regional markets later in the year.
Additional investors include Martin Ventures, The Hardenbergh Group, Florida Funders and several health care executives.
The firm also has secured a partnership with software firm R3, which includes a license to build the marketplace on top of R3's distributed ledger platform, Corda Enterprise.