In early 2010, two former McKinsey consultants (a physician and a data scientist) undertook a free project to improve clinical documentation quality for a large multisite hospitalist group. Several months in, they realized how frequently hospitalists were missing documentation for common inpatient conditions and understood the significance of the implications on MS-DRG coding.
They advocated for hospitalists to focus on a short list of conditions and used claims data to identify opportunity and quantify impact. Over the next decade, the business evolved from custom analyses of claims data to a predictive model and an accompanying performance improvement and monitoring web application. This evolution was funded by the hospitals served with zero funding from VCs.