What You Should Know:
– Centivo, a healthcare company on a mission to make high-quality healthcare more affordable, today announced a successful $75M funding round, comprising both equity and debt financing.
– The investment included participation from new strategic investors Cone Health Ventures and MemorialCare Innovation Fund, alongside existing financial investors such as B Capital, Cox Enterprises, and others.
Addressing the Affordability Crisis
Healthcare costs in the U.S. continue to soar, with a majority of the $4.5 trillion spent in 2022 being shouldered by employers. This financial burden, coupled with rising deductibles, has created an affordability crisis for working families. Centivo is tackling this systemic issue head-on, striving to provide affordable, quality healthcare to every working American.
Centivo’s Three-Pronged Solution
Centivo’s approach to cost management involves three key components:
- Advanced Primary Care: Centered around Centivo Care, its in-house virtual primary care practice, the company emphasizes proactive and preventive care.
- Direct Contracts with ACOs: The company has established direct contracts with accountable care organizations (ACOs) in 18 major markets, ensuring enhanced access and high-value care.
- Transparent, Tech-Enabled Platform: A member engagement and plan administration platform that promotes transparency and simplifies healthcare navigation.
Proven Results
In 2023, Centivo’s health plans achieved a remarkable 71% reduction in member out-of-pocket costs compared to previous plans, while also saving employers 15% or more and increasing utilization of primary and specialty care. This “win-win” model benefits both progressive employers and value-based providers committed to cost-effectiveness and superior clinical results.
Expansion Plans
This latest funding will enable Centivo to scale its product and technology, as well as forge new strategic partnerships with health systems. The goal is to deliver substantial financial savings and improved patient outcomes, reducing annual employee out-of-pocket costs by nearly $1,200.
Following its recent acquisition of Eden Health, a virtual-first medical provider, Centivo has bolstered its platform with an at-scale, PCMH-certified virtual primary care practice that includes integrated behavioral health.
“We are thrilled to have this level of financial support toward the continued growth of our radically affordable healthcare solution in America”, said Ashok Subramanian, CEO and Co-Founder of Centivo. “Our next step is to expand the number of Americans who can finally have a health plan that they can afford to use and to make more heroes out of those employers who are restoring healthcare affordability in their workplaces.”
