MDI Health Revenue & Funding (2024)

MDI Health had approximately six enterprise customers as of November 2021, according to Efergan. He noted that each of those six parent organizations could encompass many sub-entities: one health system customer, for example, operated roughly 90 hospitals. The company's first customer was Hadassah, an academic medical center in Israel, which engaged MDI Health for a clinical study around 2020.

Contracts are structured either on a per member per month basis or through a shared savings model in which MDI Health takes a portion of the savings it generates for the client. Efergan indicated that minimum contract sizes for smaller engagements or pilots start around $500,000, while large enterprise clients typically spend in the millions of dollars annually. Pricing varies based on population size and contract length. A free tier was not mentioned.

MDI Health reported zero customer churn as of the interview date, though Efergan acknowledged the company was still early-stage and that customers could have exited during pilot periods but had not. The first customer began paying around early to mid 2020.

MDI Health generates revenue through two primary contract structures: a per member per month fee tied to the size of the patient population served, or a shared savings arrangement in which the company receives a portion of the financial savings it produces for the client. Efergan described the shared savings model as one where clients effectively pay only for the value they receive.

Enterprise contracts are typically valued in the millions of dollars annually, with a floor of approximately $500,000 for smaller pilots or engagements. The average sales cycle for enterprise healthcare is 12 to 18 months, which Efergan cited as one of the primary operational constraints on growth. Pilots often include a clinical validation phase that automatically converts to a commercial contract upon completion.

Profitability was not discussed in the interview. Revenue figures were not disclosed; Efergan declined to share the company's revenue or financial targets publicly, saying only that things were looking very good. The host suggested $10 million in annual revenue as a potential 2022 target, and Efergan described that figure as very exciting without confirming or denying it as a goal. Gross margin, burn rate, runway, LTV, CAC, and churn rate beyond the stated zero logo churn were not discussed.

MDI Health employed approximately 25 people as of November 2021, up from six employees when Efergan joined around 2020. The company was actively hiring at the time of the interview, with Efergan citing a competitive job market and the demands of working at a high-growth startup as the primary hiring challenges. Team composition beyond the founding leadership was not broken out in detail in the interview.