Inovalon, a firm offering analytics to healthcare customers, is seeking $500 million in an initial public offering, the first digital health IPO of the year. The Bowie, Md.-based company will be listed on the Nasdaq, according to a Securities and Exchange Commission filing.
The company counts several insurers, including several Blue Cross and Blue Shield plans, and Walgreen Co. as clients. It was involved as a subcontractor to the National Committee for Quality Assurance in the development of the all-cause hospital readmission measure, which was later adopted by the CMS for its quality measurement program.
The company warns in its filing that its top clients account for a disproportionate share of its revenue.
Through Sept. 30, 2014, its top 10 clients accounted for nearly 70% of its $271 million in revenue.
Unlike many digital startups, Inovalon has been consistently profitable. Through the first nine months of 2014, it reported $51.8 million in net income, compared with $26.9 million in the same period a year ago.