Transcarent, a new and different health and care experience company for employees of self-insured employers and their families, today announced a $200 million Series C investment led by Kinnevik and Human Capital, with participation from Ally Bridge Group and leading health systems including Northwell Health, Intermountain Healthcare, and Rush University Medical Center. The funding round also included participation from existing investors, including General Catalyst, 7wireVentures, Alta Partners, Merck Global Health Innovation Fund, Jove Equity Partners, Threshold Ventures, and GreatPoint Ventures.
This round brings Transcarent’s total funding raised to $298 million in just over one year and highlights the growing demand from self-insured employers for Transcarent’s new and different approach to managing care for their employees and their families and the strong interest of innovative health delivery systems to explore new payment models.
“At Transcarent, we’ve created a new and different health and care experience that puts consumers back in charge and is simply better aligned for employers, employees and their families, and the providers who deliver high quality care in this country,” said Glen Tullman, Chief Executive Officer of Transcarent. “Health consumers want an experience they can understand and feel comfortable with, that provides unbiased information, trusted guidance, and easy access to high value care and that always puts quality first. They want better solutions for everyday care, for medications, for surgeries, for care that is delivered where and when they need it, ideally at home and not always during the day, and for high quality solutions for complex care like cancer. And they want all of that in one place. This is long overdue and judging by the interest we’re receiving in the market from all of us who pay for care and the companies that employ us, everyone likes what we’re doing.”
Transcarent serves as the on-ramp for self-insured employers and their employees to a new kind of experience unlike anything in healthcare today. Transcarent provides personalized health and care support for virtually all of the most common and most challenging needs, including not just essentials like urgent care but also including lower cost medications, personalized behavioral health symptom evaluation and support, along with, where appropriate, specialty care like surgeries, care at home, cancer, and expert second opinions. Members get 24/7 access to trusted digital and live guidance (real humans) and direct access to high-value care. Most Members receive no bills nor are they responsible for co-pays and co-insurance. This is because Transcarent offers what no other company does today – a fully at-risk model which pays providers up-front for care and partners with employers without any up-front or per-employee-per-month (PEPM) fees.
“For years, we’ve been anxiously waiting for more wide-ranging reform towards value in the healthcare industry and felt it has never been fully addressed – mostly because no one entity was willing to build a better end-to-end health and care experience from the ground up. We see Transcarent as the first company to address the challenge head on in a new and different way that is focused, first and foremost, on the consumer,” said Christian Scherrer, Investment Manager for Kinnevik, who is co-leading the Series C funding round.
Michael Dowling, Chief Executive Officer of Northwell Health commented, “Northwell Health has long been committed to doing our part to drive health reform in our region. It’s why we launched Northwell Direct to deliver high-quality employer health services tied to new payment models. Today, we’re proud to be partnering with and investing in Transcarent as a way to accelerate our efforts on a national level.”
Hemant Taneja, Managing Partner of General Catalyst, who led Transcarent’s early funding rounds along with 7wireVentures said, “From the first days we began to white board the ideas behind Transcarent, we realized that there was an opportunity to fundamentally change the dynamics of the industry, empower consumers with information, intelligence, and access in a way that had never before been done in healthcare. All the while, making it easier to stay healthy, less costly, and putting everyone on the same level playing field by eliminating care blocks like co-pays and co-insurance. Transcarent is all about using technology to increase access, improve quality, and reduce cost while creating an experience people love. At General Catalyst, this is core to our health assurance work.”
Armaan Ali, Co-Founder and CEO of Human Capital, commented, “Transcarent is leading the way in reimagining how consumers access information to make informed decisions about their personal health and care. The company is poised for transformative growth and continuing to attract top-level talent will be essential. In addition to joining as investors, we have already begun our partnership with Transcarent by deploying key industry technology human resource leaders to help Transcarent continue to build a world-class team. We are thrilled to be working closely with Glen and his team on this next phase in the company’s growth.”
Over the last year, Transcarent has made significant strides, bringing on board a world class leadership team, completing the acquisition and integration of BridgeHealth, the leading provider of surgical and value-based care serving over one million Members, and most recently, announcing that Walmart (NYSE: WMT) has selected Transcarent as their go-to-market solution for self-insured employers, and will be working together to make it easy for self-insured employers and their employees to access Walmart services including Walmart’s everyday low-cost pricing on pharmaceuticals for the first time.