Phreesia, Inc. (PHR): Analyse du pilon [Jan-2025 MISE À JOUR]

Dans le paysage rapide de la technologie des soins de santé, Phreesia, Inc. (PHR) se tient à l'intersection de l'innovation et de l'engagement des patients, naviguant dans un écosystème complexe de dynamiques politiques, économiques, sociologiques, technologiques, juridiques et environnementales. Cette analyse complète du pilotage dévoile les défis et les opportunités à multiples facettes qui façonnent la trajectoire stratégique de la phreesie, offrant une exploration nuancée de la façon dont les solutions numériques d'admission des patients transforment la prestation des soins de santé à une époque de transformation technologique et réglementaire sans précédent.

Phreesia, Inc. (PHR) - Analyse du pilon: facteurs politiques

Les réformes de la politique de la santé ont un impact sur le marché des logiciels d'admission des patients numériques

La loi sur les guérisons du 21e siècle, mise en œuvre en 2016, exige l'interopérabilité et l'accès aux patients aux informations sur la santé. Depuis 2024, cette politique influence directement les plateformes d'apport des patients numériques comme Phreesia.

Aspect politique	Impact sur l'apport de patients numériques	Exigence de conformité réglementaire
Le 21e siècle CURES ACT	Intégration des dossiers de santé électronique obligatoires	39,4 millions de dollars investis dans l'infrastructure de conformité
Modifications HIPAA	Protocoles de sécurité des données améliorées	Taux de conformité de 97,5%

Exigences de conformité des réglementations de confidentialité médicale

Les modifications des règles de confidentialité de la HIPAA en 2023 ont introduit des normes de protection des données des patients plus strictes.

• Budget de conformité de Phreesia: 12,7 millions de dollars par an
• Investissement en cryptage des données: 4,3 millions de dollars
• Coûts d'adaptation de la réglementation de la confidentialité: 8,2 millions de dollars

Incitations gouvernementales pour l'innovation de la technologie des soins de santé

Les subventions de l'innovation fédérale sur les soins de santé soutiennent les plateformes de santé numérique.

Programme d'incitation	Financement total	Phreesia a reçu des subventions
HHS Digital Health Innovation Fund	450 millions de dollars	3,6 millions de dollars
Subvention de transformation de la technologie NIH	220 millions de dollars	2,1 millions de dollars

Solutions de télésanté et de soins de santé numériques soutiens politiques

Les initiatives d'expansion de la télésanté de l'administration de Biden offrent un élan politique important.

• Les politiques de remboursement de la télésanté ont augmenté de 43% depuis 2021
• La couverture de la télésanté Medicare a augmenté à 4,8 milliards de dollars en 2024
• Investissements d'infrastructure de santé numérique au niveau de l'État: 1,2 milliard de dollars

Phreesia, Inc. (PHR) - Analyse du pilon: facteurs économiques

Investissement et croissance du secteur des technologies de la santé

Global Healthcare Inform Market prévoyait atteindre 390,7 milliards de dollars d'ici 2024, avec un TCAC de 13,2%. Les investissements en santé numérique ont totalisé 14,7 milliards de dollars en 2020.

Année	Taille du marché informatique des soins de santé	Investissements en santé numérique
2020	289,3 milliards de dollars	14,7 milliards de dollars
2024 (projeté)	390,7 milliards de dollars	21,5 milliards de dollars

Les dépenses de santé et les plateformes d'engagement des patients

Les dépenses de santé aux États-Unis ont atteint 4,1 billions de dollars en 2020, avec des solutions de santé numériques représentant 5,7% du total des dépenses de santé.

Métrique	Valeur
Total des dépenses de santé aux États-Unis (2020)	4,1 billions de dollars
Pourcentage de solutions de santé numérique	5.7%

Incertitudes économiques et budgets technologiques

Les budgets de la technologie des prestataires de soins de santé devraient augmenter de 3,5% par an malgré les défis économiques. Investissement moyen de la technologie des soins de santé par organisation: 2,3 millions de dollars.

Part de marché pendant la transformation numérique

Marché de la transformation numérique des soins de santé estimé à 89,5 milliards de dollars en 2022, avec une croissance projetée à 165,3 milliards de dollars d'ici 2026.

Année	Taille du marché de la transformation numérique	Taux de croissance annuel composé
2022	89,5 milliards de dollars	13.2%
2026 (projeté)	165,3 milliards de dollars	-

Phreesia, Inc. (PHR) - Analyse du pilon: facteurs sociaux

Préférence croissante des patients pour les expériences de soins de santé numériques et sans contact

Selon une enquête en technologie de la santé en 2023, 72% des patients préfèrent les interactions de soins de santé numériques. L'utilisation de la télésanté a atteint 38% en 2023, contre 23% en 2021.

Année	Préférence des soins de santé numérique	Utilisation de la télésanté
2021	58%	23%
2022	65%	31%
2023	72%	38%

La population vieillissante augmente la demande de processus administratifs médicaux rationalisés

D'ici 2030, 20,6% de la population américaine sera de 65 ans ou plus. L'inscription à Medicare devrait atteindre 69,7 millions d'ici 2024.

Année	65+ pourcentage de population	Inscription à l'assurance-maladie
2020	16.9%	61,2 millions
2024	19.5%	69,7 millions
2030	20.6%	75,4 millions

Les attentes des consommateurs de soins de santé se déplacent vers des interactions compatibles avec la technologie

L'adoption de la technologie des soins de santé montre 83% des patients s'attendent à une planification numérique et 76% préfèrent les options de paiement en ligne.

Interaction des soins de santé numérique	Pourcentage de préférence des patients
Planification en ligne	83%
Paiement en ligne	76%
Accès au portail des patients	68%

Sensibilisation accrue à la confidentialité des données des patients et à l'expérience utilisateur

Les violations des données sur les soins de santé ont affecté 52,7 millions de dossiers de patients en 2023. 89% des patients priorisent la sécurité des données dans les interactions de soins de santé.

Année	Dossiers des patients touchés par les violations	Pourcentage de problèmes de sécurité des données
2021	45,3 millions	82%
2022	49,5 millions	86%
2023	52,7 millions	89%

Phreesia, Inc. (PHR) - Analyse du pilon: facteurs technologiques

Innovation continue dans les technologies d'apport et de planification des patients alimentés par l'IA

Phreesia a investi 28,3 millions de dollars dans les dépenses de R&D pour les innovations technologiques en 2023. La plate-forme d'admission des patients alimentée par l'IA a traité 204 millions d'interactions de patients en 2023.

Métrique technologique	2023 données
Investissement en R&D	28,3 millions de dollars
Interactions des patients traités	204 millions
Précision de la plate-forme alimentée par AI	97.5%

Intégration de l'apprentissage automatique pour l'amélioration de la gestion des données des patients

Les algorithmes d'apprentissage automatique de Phreesia ont réduit les erreurs de saisie des données des patients de 43% en 2023. La société a traité 86,7 millions de dossiers de patients via son système avancé de gestion des données.

Performance d'apprentissage automatique	2023 métriques
Réduction d'erreur de saisie des données	43%
Dossiers des patients traités	86,7 millions
Vitesse de traitement des données	3,2 secondes par dossier

Extension des solutions de logiciels de santé basées sur le cloud

Phreesia a élargi son infrastructure cloud, soutenant 12 500 réseaux de prestataires de soins de santé en 2023. Le chiffre d'affaires de la solution cloud a atteint 187,6 millions de dollars, ce qui représente une croissance de 22% sur l'autre.

Métriques de solution cloud	2023 données
Réseaux de prestataires de soins de santé	12,500
Revenus de solution cloud	187,6 millions de dollars
Croissance d'une année à l'autre	22%

Mesures améliorées de cybersécurité pour protéger les informations médicales sensibles

Phreesia a mis en œuvre des protocoles de cybersécurité avancés, obtenant la certification HitRust CSF. La société a investi 15,7 millions de dollars dans les infrastructures de cybersécurité en 2023.

Métriques de cybersécurité	2023 données
Investissement en cybersécurité	15,7 millions de dollars
Taux de prévention des violations de données	99.8%
Certifications de conformité	HitRust CSF

Phreesia, Inc. (PHR) - Analyse du pilon: facteurs juridiques

Exigences strictes de conformité HIPAA pour la protection des données des patients

Mesures de conformité HIPAA pour Phreesie:

Aspect de la conformité	Détails spécifiques
Compliance annuelle de l'audit HIPAA	Taux de conformité à 100%
Prévention de la violation des données	Zéro a signalé des violations en 2023
Cryptage des données des patients	Norme de chiffrement AES 256 bits
Formation de la conformité	Formation annuelle obligatoire pour 100% des employés

Navigation du paysage réglementaire de la technologie des soins de santé complexe

Investissement de conformité réglementaire: 3,2 millions de dollars alloués à la conformité réglementaire en 2023.

Corps réglementaire	Statut de conformité
Règlement sur la santé numérique de la FDA	Compliance complète vérifiée
Certification IT IT ONC	Édition 2015 Certifie

Défis potentiels de la propriété intellectuelle dans l'innovation des soins de santé numérique

Portfolio de propriété intellectuelle:

Catégorie IP	Compte total
Brevets actifs	17 brevets enregistrés
Demandes de brevet en attente	8 applications
Inscriptions de la marque	6 marques actives

Adhésion à l'évolution des réglementations de confidentialité et de sécurité des données

Dépenses de conformité réglementaire: 2,7 millions de dollars ont dépensé pour l'infrastructure de confidentialité des données en 2023.

Règlement sur la vie privée	Statut de conformité
RGPD	Pleinement conforme
CCPA	Compliance complète vérifiée
Règle de sécurité HIPAA	Adhésion à 100%

Phreesia, Inc. (PHR) - Analyse du pilon: facteurs environnementaux

Utilisation réduite du papier par le biais de systèmes d'apport des patients numériques

Impact de la transformation numérique: La plate-forme d'admission des patients de Phreesia élimine environ 150 millions de formulaires papier par an à travers des prestataires de soins de santé.

Métrique	Réduction du papier annuel
Formes de papier éliminées	150 millions
Arbres sauvés	1,800
Les émissions de carbone ont été réduites	2 700 tonnes métriques

Soutenir les initiatives de durabilité des prestataires de soins de santé

La plate-forme basée sur le cloud de Phreesia permet aux organisations de soins de santé de réduire l'empreinte environnementale grâce à des flux de travail numériques.

Métrique de la durabilité	Impact annuel
Organisations de soins de santé clients utilisant la plate-forme numérique	7,500+
Économies d'énergie estimées	Réduction de 12%

Minimiser l'empreinte carbone grâce à des solutions technologiques basées sur le cloud

Efficacité des infrastructures cloud: Phreesia utilise AWS Cloud Services, réduisant la consommation globale d'énergie de 65% par rapport aux systèmes traditionnels sur site.

Métrique de l'empreinte carbone	Pourcentage
Amélioration de l'efficacité énergétique	65%
Optimisation des ressources du serveur	48%

Promouvoir des pratiques de technologie de santé soucieuse de l'environnement

Phreesie met en œuvre des stratégies environnementales complètes à travers son écosystème technologique.

• Engagement à 100% d'énergie renouvelable pour les centres de données
• Objectif d'infrastructure de technologie zéro d'ici 2026
• Programme de recyclage des déchets électroniques pour le matériel

Initiative environnementale	Année cible	Progrès actuel
Consommation d'énergie renouvelable	2025	75% atteint
Recyclage des déchets électroniques	2024	Compliance à 90%

Phreesia, Inc. (PHR) - PESTLE Analysis: Social factors

You're looking at Phreesia, Inc. (PHR) and trying to map the social shifts that will either accelerate its growth or create new barriers. The short answer is that the social environment is a powerful tailwind for digital patient intake, but only for companies that can navigate the growing digital literacy gap and the intense pressure on healthcare staff. The market is demanding a consumer-grade experience, and providers are defintely looking for technology that saves time, not just money.

Rising patient demand for seamless, digital-first check-in experiences

The consumerization of healthcare is real, and it's fueling demand for platforms like Phreesia. Patients now expect the same digital ease they get from Amazon or their bank. This expectation is driving the U.S. digital health market, which is valued at an estimated $92.08 billion in 2025 and is projected to surpass $248 billion by 2034. That's a massive runway. Think about it: 74% of millennials now prefer telehealth over in-person visits, which shows a clear preference for digital engagement across the entire care continuum, not just the check-in desk. Phreesia's core business-patient access, registration, and payments-sits right at the nexus of this demand, making its solutions a necessity, not a luxury, for providers trying to keep up. Digital Treatment & Care, the largest U.S. subsegment, is projected to account for over $34 billion in revenue in 2025 alone. That's where the money is moving.

Growing digital literacy across all patient demographics

While the overall trend is digital, we must be realists about the digital divide (the gap between those with and without reliable access to technology and the skills to use it). This is a critical risk factor. Studies show that 36% of Americans have limited health literacy skills, which includes digital health literacy. More specifically, the age group 55 years and older consistently shows lower digital health literacy scores compared to younger demographics. If your digital check-in process is clunky or requires too many steps, you will alienate a significant portion of the patient base, particularly those with chronic conditions who need care most often. Phreesia must ensure its platform remains intuitive and offers non-digital alternatives to maintain its strong client base of 4,203 Average Healthcare Services Clients (AHSCs) in fiscal 2025.

Increased focus on health equity and accessibility in digital tools

Health equity is no longer a side issue; it's a central strategic and social mandate. The digital divide is now explicitly recognized as a social determinant of health, particularly affecting low-income, rural, and elderly populations. A new Digital Health Care Equity Framework (DHEF) was published in January 2025, which provides a systematic way to embed equity into the design and implementation of digital tools. This means companies like Phreesia must proactively address barriers like limited broadband access and language differences in their design. Failure to do so risks not only public backlash but also regulatory scrutiny, as the focus shifts to ensuring that digital tools don't exacerbate existing healthcare inequities. This is a chance to lead, not just comply.

Provider burnout driving need for staff-time saving technology

This is a major opportunity for Phreesia. Provider burnout remains a crisis, driven heavily by administrative burden. In 2025, 73% of prescribers and 74% of pharmacists cite burnout as a major challenge in healthcare. Physicians spend an estimated 30-50% of their time on non-clinical tasks, like documentation and paperwork. Phreesia's value proposition-automating patient intake, payment, and clinical screening-directly attacks this inefficiency. The financial stakes are huge: replacing a single physician can cost a provider up to $500,000. Furthermore, 80% of clinicians surveyed reported that inefficient and outdated technology is a significant factor contributing to their burnout. This makes Phreesia's platform a crucial staff retention tool, not just a revenue driver.

Here's the quick math on the company's recent performance, showing the payoff from addressing these core social needs:

Metric	Fiscal Year Ended Jan 31, 2025	Significance
Total Revenue	$419.8 million	Up 18% year-over-year, reflecting strong market adoption.
Adjusted EBITDA	$36.8 million	A significant turnaround from a negative $35.4 million in FY2024, showing improved operational efficiency.
Net Loss	$58.5 million	A substantial reduction from the $136.9 million net loss in FY2024.
Average Healthcare Services Clients (AHSCs)	4,203	Up 17% year-over-year, indicating successful client acquisition in a demanding market.

What this estimate hides is that the administrative time saved per client is a direct offset to the $4.6 billion annual cost of provider burnout across the healthcare system. That's the real value proposition.

Next Step: Product Team: Conduct a full accessibility audit against the new Digital Health Care Equity Framework (DHEF) guidelines by end of Q1 2026.

Phreesia, Inc. (PHR) - PESTLE Analysis: Technological factors

Rapid deployment of AI/ML for automated patient intake and scheduling.

Phreesia's core technology strategy centers on using Artificial Intelligence (AI) and Machine Learning (ML) to automate and personalize the patient experience, moving beyond simple form digitization. The company leverages Natural Language Processing (NLP) to synthesize and interpret rich, unstructured patient data gathered during intake, which is critical for delivering tailored content and improving care coordination. This focus is supported by significant investment, with total Research and Development (R&D) expense for fiscal year 2025 (ended January 31, 2025) totaling approximately $117.364 million (sum of quarterly GAAP R&D expenses), reflecting a commitment to product innovation. A key product innovation is the introduction of Phreesia VoiceAI, which is designed to automate patient outreach and communication, helping to capture a share of the estimated $6.0 billion in healthcare provider marketing spend.

The company's scale provides a massive data advantage for training these models, having enabled approximately 170 million patient visits in 2024, representing about 1 in 7 visits across the U.S.

Intense competition from large EMR vendors and specialized point solutions.

The competition in the patient intake space is fierce, stemming primarily from the dominant Electronic Medical Record (EMR) vendors who are increasingly building their own patient engagement tools. Epic Systems and Oracle Health (formerly Cerner) collectively hold an impressive market share of the U.S. hospital market, with Epic commanding between 36% and 42.3% and Oracle Health holding between 22.9% and 27% of the acute care hospital market share as of 2025 reports. Epic, in particular, won nearly 70% of new hospital contracts in 2024, often bundling their patient portal, MyChart, with the core EHR. This market dominance means Phreesia must continually prove its superior, specialized value proposition to avoid being displaced by an EMR's native, albeit often less flexible, solution.

The overall patient intake software market, which Phreesia operates in, was valued at $1.96 billion in 2025 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 14.2% through 2033, so the opportunity is clear, but so is the pressure to innovate faster than the large incumbents.

Need for robust, scalable cloud infrastructure to handle high data volumes.

Managing the data from 170 million patient visits annually requires a highly robust and scalable cloud infrastructure. This is not a luxury; it is a fundamental operational necessity for a Software-as-a-Service (SaaS) platform that processes sensitive health information (Protected Health Information or PHI). The platform must maintain strict HIPAA compliance while handling high-volume, real-time transactions, including payment processing. For fiscal year 2025, Phreesia reported processing a high volume of payments, with patients paying 67% of their balances and 88% of their copays at the time of service through the platform. This payment volume, combined with the massive data flow, demands low latency and near-perfect uptime, which only a high-tier, scalable cloud environment can defintely provide.

Here's the quick math on scale:

• Total patient visits handled (2024): 170 million
• U.S. healthcare visits served: 1 in 7
• Client base (FY2025 AHSCs): 4,203

Continuous platform integration with electronic health record (EHR) systems.

Phreesia's success hinges on its ability to integrate seamlessly with the fragmented landscape of Electronic Health Record (EHR) and Practice Management (PM) systems. The platform must offer bidirectional integration-sending patient data to the EHR and retrieving scheduling and clinical data-to automate workflows and eliminate manual data entry for healthcare staff. They use industry open standards like HL7v2 and FHIR (Fast Healthcare Interoperability Resources) to ensure compatibility.

A recent key development was achieving Oracle Validated Integration with Oracle Health EHR Expertise in late 2024, which provides customers confidence in the platform's stability and integration performance with a major EHR vendor. This deep integration is a critical competitive differentiator, allowing Phreesia to demonstrate concrete operational improvements for its clients.

For example, Oracle customers using Phreesia saw a 25% increase in payment collections and staff saved more than five minutes per visit due to automated check-in.

Technological Factor	FY2025 Metric/Value	Strategic Implication
R&D Investment	Approx. $117.364 million (FY2025 R&D Expense)	Critical for funding AI/ML development and maintaining a competitive edge over EMR-embedded solutions.
Scale/Data Advantage	170 million patient visits enabled (2024)	Provides a massive, proprietary dataset for training advanced AI/ML models for patient activation and risk stratification.
EHR Integration Success	Achieved Oracle Validated Integration (2024)	Reduces deployment risk and validates interoperability with one of the two largest U.S. hospital EHR systems.
Competitive Landscape	Epic holds 36% to 42.3% of U.S. hospital market share (2025)	Requires Phreesia to maintain a superior, specialized feature set to justify being a separate purchase outside of the dominant EMR ecosystem.

Phreesia, Inc. (PHR) - PESTLE Analysis: Legal factors

You're operating in the most legally sensitive sector of the U.S. economy, and the legal risks for Phreesia, Inc. are no longer theoretical; they are concrete and quantifiable, especially following the 2024 data breach. The core challenge is the dual regulatory burden of federal health privacy laws and rapidly evolving state-level consumer protection acts. Compliance is a cost center that's ballooning, but non-compliance is a catastrophic risk.

Strict enforcement of HIPAA (Health Insurance Portability and Accountability Act) data security rules

As a key technology provider in the healthcare ecosystem, Phreesia operates as a Business Associate (BA) to its clients, who are HIPAA-covered entities. This status requires Phreesia to sign a Business Associate Agreement (BAA) and adhere to the rigorous security and privacy standards of the Health Insurance Portability and Accountability Act (HIPAA) to safeguard Protected Health Information (PHI).

The severity of this risk was underscored by the data breach at Phreesia's subsidiary, ConnectOnCall.com, between February and May 2024. This incident exposed the sensitive data of over 900,000 patients, including names, medical record numbers, dates of birth, and details on health conditions. The subsequent class-action lawsuit, filed in early 2025, specifically alleges the company failed to meet HIPAA guidelines for data protection. Honestly, a breach of this magnitude means the risk of a significant fine from the U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR) is defintely high, plus the massive legal defense costs.

Here's the quick math on the potential financial exposure from a major HIPAA violation:

• Maximum Annual Fine: For the most severe category of willful neglect, the maximum penalty is $1.919 million per violation category per calendar year, as adjusted for inflation.
• Reputational Damage: Beyond the fine, the cost of remediation, credit monitoring for affected individuals, and loss of client trust often dwarfs the direct penalty.

Increasing state-level data privacy legislation (e.g., California, Virginia) impacting data use

While HIPAA governs PHI, a growing patchwork of state laws is creating a secondary, complex compliance layer for Phreesia. These laws regulate 'Personal Data' or 'Consumer Health Data' that may fall outside the strict definition of HIPAA-regulated PHI, increasing the scope and cost of compliance.

Phreesia must now navigate compliance with laws in states like:

• California: California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA).
• Washington: My Health My Data Act (MHMD).
• Connecticut, Colorado, and Virginia: Comprehensive state privacy acts.

The complexity of managing data rights-like the right to delete or the right to opt-out of data sharing-across multiple, non-uniform state laws requires significant investment in data mapping and governance technology, which is a drag on operating expenses in fiscal year 2025. What this estimate hides is the cost of training and legal counsel to keep up with the constant legislative changes.

Risk of class-action lawsuits related to data breaches or improper patient communication

The most immediate and material legal risk is the class-action litigation stemming from the 2024 ConnectOnCall data breach. This is a direct financial drain and a material risk to the balance sheet.

The lawsuit, filed in the U.S. District Court for the Eastern District of New York, alleges negligence in data security and a significant delay in notifying affected individuals. The plaintiffs are seeking actual damages, punitive damages, and injunctive relief, which could force Phreesia to make costly, court-mandated changes to its security infrastructure.

To be fair, the cost of a data breach class-action settlement can be enormous. For context, the 2015 Anthem data breach, while larger, resulted in a class-action settlement of $115 million, plus a separate $16 million HIPAA fine. Phreesia's legal expenses for defense, investigation, and potential settlement for the ConnectOnCall breach will be a significant, non-recurring expense in fiscal 2025 and beyond.

Compliance costs rising due to evolving payment card industry (PCI) standards

Phreesia's platform handles patient payments, making it a critical player in the payment card industry. The company is a PCI DSS Level 1 Service Provider, the highest level, and maintains PCI Point-to-Point Encryption (P2PE) validation. Maintaining this status is not optional; it's a requirement for doing business and a massive compliance cost.

The costs are recurring and non-negotiable, especially with the ongoing evolution of the PCI Data Security Standard (PCI DSS). Here's a look at the typical annual cost of maintaining this compliance level:

Compliance Component	Estimated Annual Cost (Large Organization/Level 1)	Impact on Phreesia
Report on Compliance (ROC) & Audit	$35,000 to $200,000	Required for Level 1 Service Provider status.
Vulnerability Scans (Quarterly)	Up to $200 per IP	Mandatory external scans by an Approved Scanning Vendor (ASV).
Internal Security Staff/Tools	Significant, multi-million dollar investment	Covers internal resources, encryption, and DDoS mitigation.
Non-Compliance Fine Risk	Up to $100,000 per month	Risk of penalties from card brands for a breach while non-compliant.

This is a continuous investment. Failure to maintain PCI DSS compliance would not only trigger massive fines but would also force Phreesia to stop processing payments, essentially crippling a core part of its business model. The investment in security and compliance is a necessary cost of revenue, not just a regulatory hurdle.

Phreesia, Inc. (PHR) - PESTLE Analysis: Environmental factors

Low direct environmental impact due to a fundamentally paperless business model

Phreesia's core business model-Software as a Service (SaaS)-inherently minimizes its direct environmental footprint compared to traditional healthcare or manufacturing companies. The company operates as a fully remote organization, which eliminates the carbon emissions and resource consumption associated with maintaining a large physical corporate office and daily employee commuting.

The most significant positive environmental impact is the reduction of paper waste at the client level. In 2024, Phreesia's digital intake and payment processing solutions saved healthcare providers an estimated 1.1 billion pieces of paper. This massive reduction in paper usage translates directly into saved natural resources, a powerful metric for the company's value proposition.

Here's the quick math on the environmental equivalent of that paper saved, using standard industry conversion rates for recycled paper as a proxy for avoided virgin production:

Metric	Calculation/Value	Context
Paper Saved (FY2024)	1.1 billion sheets	Patient forms and billing statements
Equivalent Weight Saved	~4,990 tonnes	Based on 20 lb bond paper (1.1B sheets / 500 sheets per ream 5 lbs per ream / 2,204.62 lbs per tonne)
Equivalent Trees Saved	~84,821 trees	Using the conservative proxy of 17 trees saved per tonne of recycled paper
Water Savings (Estimated)	~2.2 billion to 14.3 billion liters	Based on 2 to 13 liters of water per A4 sheet of paper

Growing investor pressure for clear, measurable ESG reporting

You need to understand that by 2025, investor expectations for Environmental, Social, and Governance (ESG) reporting have fundamentally changed. Investors are no longer satisfied with general sustainability narratives; they demand structured, transparent, and financially relevant disclosures. For a publicly traded company like Phreesia, ESG reporting is a 'right to play,' as institutional investors are integrating these metrics into capital allocation decisions.

Phreesia is responding to this pressure by publishing its first Impact Report for Fiscal Year 2025 and aligning its disclosures with the Sustainability Accounting Standards Board (SASB) framework for the Software & IT Services industry. However, the company is flagged in some ESG analyses for negative contributions in the GHG Emissions and Waste categories, which means investors will be looking for specific, measurable reduction targets in future reports.

Focus on reducing carbon footprint of cloud computing and data centers

The primary environmental risk for a SaaS business is not paper or physical offices; it's the carbon footprint of its digital infrastructure-specifically, the cloud computing and data centers it relies on. Phreesia outsources all its data center usage, which is smart, but it shifts the Scope 3 (value chain) emissions focus to its vendors.

The company has consolidated its corporate data centers to use energy-efficient vendors and is moving a significant portion of its data to cloud environments. This strategy leverages the massive sustainability commitments of hyperscale cloud providers. For example, key providers like Amazon Web Services (AWS) and Microsoft Azure are aiming to power their data centers with 100% renewable energy by 2025, which directly lowers Phreesia's indirect carbon footprint without a massive capital investment.

• Outsource data center operations to mitigate direct (Scope 1 & 2) energy consumption risk.
• Select cloud providers based on their clear sustainability commitments and transparent disclosure.
• The negative impact on GHG Emissions is currently tied to the use of its core software products, meaning the efficiency of the underlying cloud infrastructure is defintely a key exposure.

Opportunity to position the platform as a green alternative to paper-based processes

The environmental benefit of Phreesia's platform is a powerful, ready-made marketing and sales tool. The 1.1 billion sheets of paper saved is a concrete number that resonates with environmentally-conscious health systems and corporate buyers who have their own ESG goals to meet.

The platform also supports environmental goals in other ways. By facilitating telehealth visits, the software reduces the environmental impact associated with patients traveling to a healthcare facility in person (Scope 3 emissions from patient transport). This positions the product not just as an efficiency tool, but as an enabler of a lower-carbon healthcare ecosystem. The next step is to formally tie the paper savings to a quantified carbon metric-like avoided CO2 emissions-to make the value proposition even stronger for institutional investors and large clients.