Healthcare cloud computing platform and service provider ClearDATA Networks has closed a $14M Series B funding round that will help it grow its HIPAA-compliant cloud which hosts data and applications for many healthcare facilities and related service providers.
ClearDATA’s HIPAA-compliant cloud computing platform currently serves more than 300,000 healthcare professionals and secures tens of millions of healthcare records.
The healthcare information technology market is estimated to be worth $35 billion annually, growing at around 20 percent per year as thousands of healthcare providers migrate to electronic records. Cloud solutions have emerged as a way to securely store and maintain vast amounts of patient data cost-effectively, but also to improve the quality of care by introducing efficiencies and by deriving insight through the analysis of Big Data.
“As the need to analyze vast amounts of data increases, ‘Big Data’ presents opportunities to improve patient health,” Joe Volpe, investment principal for Series B backer Merck Global Health Innovation Group said.
Investors in the Series B financing round came in two stages including investors Excel Venture Management and Norwest Venture Partners when it initially closed. The B round was then reopened to include Merck Global Health Innovation Fund.
Third-parties hosting and managing sensitive US health data are subject to strict guidelines. As of September 2013, the HIPAA Omnibus Final Rule has required IT providers who touch a healthcare provider’s protected health information to specify their responsibilities in maintaining security and privacy.
Earlier this year, Logicworks came out with a HIPAA-compliant cloud based on VMware’s vCloud and EMC’s reference architectures for healthcare, providing disaster recovery and hybrid cloud capabilities for medical organizations.
Major public clouds like Amazon’s EC2 and S3 are HIPAA compliant and have features that facilitate the creation, delivery and auditing of healthcare services (PDF), yet they may not make it easy enough for a hospital’s IT staff to create their own compliant solution. This is where purpose-built healthcare cloud solutions may have an advantage over more general clouds.