Health Catalyst raises $41 million from Sequoia as sales top $45 million

Health Catalyst, the Cottonwood Heights-based medical information company, raised $41 million in a Series C venture capital.

Investors in the company, which makes software to help hospitals manage data, include Sequoia Capital, Norwest Venture Partners, Kaiser Permanente Ventures, Sorenson Capital, CHV Capital (an Indiana University Health Company) and Partners HealthCare, Health Catalyst said in a statement.

“As more healthcare organizations are coming to understand, data warehousing and analytics are foundational to their success under new payment and risk models,” Chief Executive Officer Dan Burton said in a statement.

Including this round, the company has raised $82 million and will be cash flow positive this year, he said. In the past year, the company’s sales rose to $45 million from $8 million, according to an article in the Wall Street Journal’s CIO Report citing an interview with Burton.

Health Catalyst plans to spend $50 million on product development in the next two years. The investment will “enable Health Catalyst to develop the applications necessary to offer every health system in the U.S. a roadmap to systematically reduce waste and improve care delivery, across every major clinical and workflow area,” Burton said.

New 2013 customers include Kaiser Permanente, Crystal Run Healthcare and Partners HealthCare. Health Catalyst’s software operates more than 135 hospitals and 1,700 clinics.