Silicon Valley VC invests $25M in implant provider.

Courtesy Atlanta Business Chronicle

An Alpharetta-based health-care services firm has raised about $25 million from Silicon Valley-based Sequoia Capital and plans to create 150 white-collar jobs.

Implantable Provider Group Inc. (IPG) plays in the relatively untapped medical device benefit management space. The company buys medical implants, such as pacemakers and knee replacements, for hospitals and surgery centers and files reimbursement claims with insurers.

By doing the purchasing, IPG saves hospitals from tying up limited capital and spares them the complexity and financial risks associated with the billing and reimbursement process. Insurers, who contract with IPG, benefit from lower claims costs — about 15 percent to 20 percent— since IPG buys the implants in bulk. Device manufacturers, meanwhile, get a distribution channel for their products.

“Our primary value proposition is generated toward the payer,” CEO Jay Ethridge said. “Of all the dollars that an insurer spends on an implantable device procedure (i.e. physician fees, facility overhead, etc.), the cost of the device is the largest part.”