Healthcare analytics firm Health Catalyst has raised $41 million in a recent Series C financing round. Existing investors such as Norwest Venture Partners, Kaiser Permanente Ventures, and Sequoia Capital participated in the said round, according to Forbes.

The Massachusetts-based firm was founded in 2008 by Steve Barlow and Thomas Burton. According to Chief Executive Dan Burton, the company might go for another round before launching an initial public offering (IPO) in a couple of years, the report detailed.

With the government implementing lots of payment reforms, health care providers need a tool that can help make sense of data in electronic health records to improve patient care. Over a dozen health institutions have purchased Health Catalyst's software. The firm's customers include Indiana University Health, Partners HealthCare, and Kaiser Permanente.

The company plans to use the new capital for the development of 200 new clinical applications. An app that alerts for potential medical errors is also in the works, Forbes reported.