Healthcare technology start-up Meroka, which helps independent physician teams through a platform that supports practice operations, has launched with $6 million in seed funding.
The seed round was led by Better Tomorrow Ventures and Slow Ventures, with participation from 8VC and other investors.
The launch comes amid the decline of private practice. The number of physician-owned private practices in the U.S. has declined by nearly 20% since 2012, according to a survey from the American Medical Association.
“Independent doctors are some of the most entrepreneurial and mission-driven professionals out there,” Alex Barrett, CEO of Meroka, said in the release. “But too often, they are forced to spend more time managing vendors and paperwork than leading their teams and caring for patients. We built Meroka to give them the support and ownership structure they deserve, so they can keep building the kind of care they believe in and keep their practices in the hands of their teams and communities.”
Meroka’s model seeks to counter these headwinds by converting physician-owned practices into employee-owned organizations through an employee stock ownership structure supported by a modern operations stack.
The first cohort includes five OB-GYN practices in five states, according to Forbes. Early results from the model have shown a 5% lift in earnings within six months, driven by higher collections, fewer denials and reduced costs such as malpractice premiums.
“We’re not trying to ‘save’ independent medicine,” Mr. Barrett said. “We’re trying to unlock its full potential—by giving great physicians the power and platform to continue practicing, building, and owning their futures.”
