SOURCE: Health Hero Network

November 16, 2006 08:00 ET

Health Hero Network Secures $16 Million in Oversubscribed Series B Financing

Funding to Help Drive Adoption of Health Buddy® System for Chronic Care Management

REDWOOD CITY, CA -- (MARKET WIRE) -- November 16, 2006 -- Health Hero Network, a leading innovator of technology solutions for chronic care management, today announced it has secured $16 million in an oversubscribed series B financing to underwrite ongoing new product development and marketing for its successful Health Buddy® System. The investment was led by existing investor Psilos Group and new investors California Technology Ventures, Integral Capital Partners and Boston Scientific. Existing investors Artal Services, Shoreline Venture Partners and ZG Ventures provided additional support.

The Health Buddy System helps improve patient outcomes and reduces the cost of care for patients with chronic diseases by educating and monitoring patients at home through easy-to-use home devices. Healthcare professionals access data transmitted from the patient at home using web-based health management programs. Studies have shown that the Health Buddy System produces results by modifying patient behavior and improving therapy compliance, while enabling healthcare professionals to identify problems earlier and prevent acute complications of chronic illnesses. The System is being utilized by more than 16,000 patients and is currently deployed in 120 Veteran Health Administration facilities.

"This additional investment will reinforce our long-standing leadership position in providing tools enabling a better model of care for patients with chronic conditions and their care providers," said Steve Brown, president and chief executive officer of Health Hero Network. "We are expanding our technology and services to more partners and customers. We are committed to delivering convenient and easy-to-use solutions for patients."

An estimated 133 million Americans, or about 45 percent of the population, have one or more chronic health conditions such as diabetes, heart failure or chronic obstructive pulmonary disorder (COPD). According to a 2004 study by the Robert Wood Foundation and Johns Hopkins University, spending for chronic illnesses represents 83 percent of total health care costs in the United States.

"Automated patient behavior monitoring and modification systems are essential to meeting the growing needs of patients, health care providers, and payers. The Health Buddy System serves as a critical interface among these parties and has proven to have a positive effect on patient outcomes and cost containment," said Brian Stansky, managing director for Integral Capital Partners. "We look forward to working with the Health Hero Network team and the other investors to bring this technology to an expanding set of patient needs and care settings."

"The company has deep intellectual property assets and customer relationships that prove the value of the intellectual property, as evidenced by the company's work with the VA and the company's licensing agreements with leading companies," said Alex Suh, Founding Managing Director of California Technology Ventures. "Strong financial backing and continued commitment from the company's investors and management show that Health Hero Network will be a leader in this market for years to come."

About Health Hero Network

Based in Redwood City, Health Hero Network develops and markets the Health Buddy® System for health improvement. The Health Buddy System serves as the interface between patients at home and care providers, facilitating education and monitoring of patients with chronic conditions. The System includes monitoring technologies, clinical information databases, Internet-enabled decision support tools, health management programs and content development tools. Through increased communication, behavior modification, and prevention, the Health Buddy System improves the quality of patient care. Health Hero Network's systems are protected by 57 issued US patents. http://www.healthhero.com

Contact Information

  • Media Contacts:
    Andrea Sharma
    Health Hero Network, Inc.
    650-779-9158
    Email Contact

    Helen Phung
    FischerHealth
    310-577-7870 ext.109
    Email Contact