Digital health and benefits management startup Transcarent raised $200 million from investors including Northwell Health, Intermountain Healthcare and Rush University Medical Center, the company announced Tuesday.
Transcarent, which offers self-insured employers a digital app that connects employees with a doctor 24/7 and second opinions, previously raised $98 million in the year since its launch.
The latest round was led by Kinnevik and Human Capital, and includes Ally Bridge Group, General Catalyst, 7wireVentures, Alta Partners, Merck Global Health Innovation Fund, Jove Equity Partners, Threshold Ventures and GreatPoint Ventures.
Transcarent is led by former Livongo CEO Glen Tullman, which was acquired by Teladoc in late 2020 for $18.5 billion.
The company plans on expanding into new markets beyond employers, and growing its team. The investment from the three large health systems marks an acknowledgment of the move toward cost containment and paying for outcomes. Transcarent's business model is partially based on a cut of savings achieved for employers through finding more affordable care options.
"Northwell Health has long been committed to doing our part to drive health reform in our region, [and] it's why we launched Northwell Direct to deliver high-quality employer health services tied to new payment models," said New Hyde Park, New York-based Northwell Health CEO Michael Dowling. "Today, we're proud to be partnering with and investing in Transcarent as a way to accelerate our efforts on a national level."
In 2019, Transcarent acquired BridgeHealth, a startup that has a network of Centers of Excellence and ambulatory surgery center partners, combined with pre-negotiated surgical bundles. The company pays providers upfront, and makes quality ratings and prices for providers visible to employees. It also penned a partnership with Walmart for low-cost pharmaceutical access.
