SAN FRANCISCO, April 9, 2020 /PRNewswire/ -- Ferrum Health, developer of an enterprise IT and AI patient safety platform for health systems, today announced that it has closed a $9 million Series Seed funding round led by Blumberg Capital with participation from GSR, Vulcan Capital, Valley Capital Partners, and an undisclosed strategic family office.
Ferrum Health's next generation artificial intelligence (AI) technology is designed to help health system executives prevent costly medical errors across their patient population, serving as a safety net that uses AI algorithms to assist quality teams in the peer review of radiology studies. Last month, Sutter Health, a large nonprofit healthcare system in Northern California, announced the deployment of Ferrum's patient safety platform across its Sacramento facilities to deliver higher quality and more consistent care to its millions of patients.
The seed funding will be used to continue to advance and refine Ferrum's flagship AI patient safety platform, make key engineering hires, and grow its sales and marketing capabilities.
"Ferrum's platform stood out to us as a differentiated solution with broad market potential to provide unique quality insights to healthcare professionals that could make an enormous impact on saving lives," said Patrick Steele from Blumberg Capital. "Far too many lives are lost every year to preventable medical errors. Ferrum offers a unique opportunity to integrate technology to solve problems and catch errors that are missed by humans. We're excited about the opportunity Ferrum has to improve the quality of care that health systems deliver at the population level."
Ferrum's AI patient safety platform provides health systems with a multi-pronged patient safety evaluation system. The system deploys multiple computer vision algorithms that assess radiologic images for commonly missed pathologies, such as lung nodules or fractures, and then uses a proprietary natural language processing algorithm to correlate those findings with physician notes, flagging potentially missed findings for hospital quality officers to follow-up on - all without disrupting provider workflows. In this way, Ferrum's platform acts as a tool to assist team members looking to improve patient safety practices at their hospital.
"As a society, it is unconscionable that we allow preventable medical errors to remain the third leading cause of death in the world. Ferrum's mission is to eliminate avoidable harm across all of healthcare, and this capital will be instrumental to further building out and scaling our platform to more health systems and patients," said Pelu Tran, co-founder and CEO of Ferrum Health. "With this seed funding, Ferrum will focus on rapidly expanding the number of patient lives and types of medical errors our AI patient safety platform covers. We are now well positioned with our mix of investors to drive this important mission forward alongside the many quality-focused health systems that we serve."
As part of the financing, Patrick Steele (Blumberg Capital) will join Ferrum Health's Board of Directors, bringing decades of operating and governance experience as the former executive vice president and CIO for Delta Dental of California and as a member of the board of directors for CommonSpirit Health.
About Ferrum Health
Ferrum Health is a health technology company that partners with leading hospital systems to reduce the impact of medical errors, modernize quality improvement and improve patient outcomes through the use of artificial intelligence. Ferrum's next-generation patient safety platform provides hospital systems with an additional layer of quality assurance for critical decisions across the entire continuum of patient care.
SOURCE Ferrum Health