business

Ability Network Inc., which is building what its boss says is the nation's largest and most secure Web-based health care network, will announce Tuesday that it's received $27 million in venture capital from Bain Capital Ventures of Boston and locally based Lemhi Ventures.

This is the third and largest round of equity capital raising for Ability, formerly known as VisionShare, which previously has raised $16 million.

"This investment further validates Ability's industry-leading work in enabling secure use of the Internet for facilitating the exchange of health information between providers, payers, and other health care stakeholders,'' said CEO Mark Briggs in an interview Monday. "The capital will support an array of new and ongoing initiatives to use Ability's ... network to improve administrative efficiency and patient care.''

The capital also will support expansion of Ability's leadership role with the ''Direct Project,'' a collaborative effort by industry and government to develop a standardized system for secure transmission of health information over the Internet.

Ability, which recently moved to new headquarters in the century-old Butler Square building in downtown Minneapolis, employs about 140.

"We've got a strong hiring plan," Briggs said from Boston. "It's a reflection of the interest of our customers." Ability does not disclose sales.

The company electronically connects thousands of hospitals, skilled nursing facilities, medical clinics and physicians with consumers, insurers and Medicare.

"We spend a good portion of our time looking at health care services and health care I.T. companies as investment opportunities and saw right away how well positioned Ability is ... in secure web-based health care information exchange," said Jeff Crisan, a Bain Capital managing director, in a statement.

Crisan will join the Ability board of directors.

"This infusion of capital is validation of the tremendous progress Ability has made in building a national network of providers and payers," said Tony Miller, managing partner of Lemhi Ventures, a long-standing investor in the 10-year-old company. "We are pleased that Bain Capital shares that vision and look forward to continued growth with Ability."

Ability, which says it already connects 3,000, or 65 percent, of America's hospitals and "tens of thousands" of clinics and offices, aims to increase coordination and safety by electronically linking complete health care records, and cut costs through efficient care coordination and online payment services.

Neal St. Anthony • 612-673-7144