As cloud has become very much a mainstream way of delivering IT for enterprises, there are still a couple of industries that have been somewhat behind when it comes to adopting cloud. Both the financial services and health industries have significant regulatory hurdles to overcome in order to move data out of on-premises IT and into the cloud. Of course there are good examples of this happening – the rise of the cloud-based Electronic Health Records (EHR) vendors is one good example, but generally speaking adoption in these industries lags behind.
So when a large health provider not only adopts a cloud solution, but invests in a cloud vendor, ears tend to prick up. That is the situation with medical imaging technology vendor DICOM Grid who is today announcing a small but important funding round. Joining Canaan Partners and CHL Medical Partners in participating in the $6M round is none other than the Mayo Clinic, the nonprofit medical practice and medical research group based in Minnesota.
DICOM Grid was founded back in 2006 with a view to making digital medical imaging a cloud-delivered health tool. The company is based in Arizona and has, to date, raised over $30M in funding. The company’s product, DG DGIT NaN% Suite, allows healthcare providers to manage diagnostic imaging and related health data in the cloud. DICOM currently manages over 1.2 billion images and covers CD ingestion, image sharing, patient transfers, remote reads and disaster recovery. The DICOM solution is, of course, HIPAA compliant.
According to information provided by DICOM, current estimates show that imaging has been one of the fastest growing components of medical costs, and constitutes between 7.5 and 10% of total healthcare expenditures. Even though costs of imaging amount to more than $100 billion per year, 10% of these exams—$10 billion worth—are duplicative or unnecessary. With a cloud-based solution, image sharing and storage becomes easier with less need for duplication
Greater Houston Healthconnect, the exchange which serves 20 counties in Southeast Texas, is delivering DICOM to 15000 physicians and 130 hospitals. The cost and time savings when compared to analog imaging technologies is obvious and substantial.
It’s always nice to see cloud pushing out into new industries – the DICOM funding and growth is a good example of that.