What You Should Know:
– Transcarent, a San Francisco, CA-based provider of consumer-directed healthcare to self-insured employers, just announced $58M in Series B funding led by many of the top health and tech investors, bringing its total funding to $98M.
– Led by CEO Glen Tullman, an industry veteran who previously led Livongo and Allscripts, Transcarent is overhauling the self-insured healthcare industry – a market that is long overdue for disruption. Despite numerous efforts and billions of dollars fueling a digital health revolution, employer healthcare costs continue to spiral out of control.
To solve it, Transcarent’s approach is to shift power back to employers who’ve traditionally not had much leverage to negotiate better deals with providers, shouldering much more of the risk associated with achieving better outcomes. For employees, who have for too long endured higher-priced care for less-than-satisfactory outcomes, they get a personalized, concierge-style healthcare experience. However, assuming risk is not without its own entrepreneurial risks.
Transcarent increases access to high-value care for self-insured employers and their employees while also better managing costs. To date, the company’s solutions have delivered some impressive results:
– 21% of patients have received a change/correction in diagnosis
– 72% of existing treatment plans were corrected or changed
– 40% of patients avoided unnecessary surgeries or procedures
– Members seeking care are connected with a provider in 60 seconds, on average
– Surgery solution model provides an average overall net savings of 50% per procedure
“We believe the next 18 months will define the next five years in healthcare, and much of that innovation centers around two words: experience and alignment,” said Glen Tullman, CEO of Transcarent. “There’s an extraordinary amount of friction in today’s healthcare journey which makes their experience more confusing, complex, and costly than ever. Siloed point solutions and navigators don’t improve people’s experience and don’t address the lack of alignment with the true payers in healthcare: employers and the people who work for them. Transcarent will remove the unnecessary barriers and provide employees with the right resources to make informed decisions for themselves and their families and at a better value for their employers.”