TECH DEALS

Athenahealth snaps up Austin-based healthcare startup Patient IO

Acquisition will help Athenahealth build out its mobile and web-based app for patients.

Posted August 29th, 2016

Athenahealth, the nation's largest healthcare network, has acquired Austin-based healthcare startup Patient IO.

Financial terms of the deal were not disclosed.

Founded in 2013 by entrepreneurs Jason Bornhorst, Colin Anawaty and Brian Gambs, Patient IO offers a mobile and Web-based app that lets healthcare providers keep in touch with patients, particularly those with chronic illnesses, between visits.

Patient IO allows patients to manage medications, review medical information and record data. More than 30 clinics are currently using the app to coordinate care for their patients.

The Patient IO platform will form the basis for AthenaHealth's mobile app for patients called athenaWell.

"Care coordination and patient self-management is the next big ground on which healthcare will compete," said John Porter, senior vice president of services for Athenahealth. "By adding Patient IO to our portfolio... we've been able to strengthen our ability to partner with providers as they enter into value-based care delivery."

Athenahealth, based in Watertown, Mass., provides cloud-based services such as electronic health records, medical billing and other services for doctors' offices, hospitals and other facilities nationwide.

The company, which has more than 4,000 employees nationwide, chose Austin for an expansion of its research and development operations in 2014.

In exchange for incentives of $679,500 from the City of Austin and more than $5 million from the state, Athenahealth agreed to create more than 600 jobs at its offices at the Seaholm Power Plant development downtown.

Last year, Athenahealth launched an Austin-based accelerator program for health care technology startups.

Through the program, called More Disruption Please, the company said it would get access to new products and services to fill product gaps and add offerings.

Patient IO was the first participant in the Austin program. The company also operates accelerator programs in Boston and San Francisco.

As part of the program, Athenahealth made an undisclosed investment in Patient IO.

Prior to that, Patient IO raised $1.5 million from investors including Mercury Fund and Techstars Ventures. The company also received $3.3 million in venture investment last year, according to securities filings.

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