Honest Health announced it has raised $140 million in a capital round led by NewSpring Healthcare, underscoring growing demand for its health system-focused approach to value-based care. The funding will support the company’s continued expansion into new markets and deepen partnerships with health systems, provider organizations, and payers operating under risk-based payment models.
Honest Health partners with health systems and providers to succeed in value-based care through technology-enabled care coordination, quality improvement programs, and actionable data insights. The round was supported by K2 HealthVentures and existing investors including Rubicon Founders, Oak HC/FT, Welsh, Carson, Anderson & Stowe (WCAS), and Durable Capital Partners.
The company aims to help health systems navigate the operational and financial complexities of value-based reimbursement, where providers assume accountability for quality and cost outcomes. With the new capital, Honest Health plans to scale its infrastructure and broaden its national footprint as risk environments become more complex.
Honest Health is led by CEO Rob Bessler, M.D., a physician entrepreneur who previously founded Sound Physicians and grew it into a multibillion-dollar organization operating across 42 states. The company was founded in 2021 by Adam Boehler, Abe Sutton, and Matt Kim of Rubicon Founders. Boehler previously served as director of the Center for Medicare and Medicaid Innovation, a position currently held by Sutton.
Leerink Partners served as exclusive financial advisor to Honest Health on the transaction, while Ropes & Gray acted as legal counsel.
KEY QUOTES
“Value-based care continues to reshape the healthcare landscape, creating significant demand for partners that can support execution at scale,” “Honest Health has demonstrated a strong ability to help health systems navigate this transition, and we see substantial opportunity to expand the company’s reach. With our deep healthcare operating experience, we’re excited to partner with Honest Health to support continued adoption of value-based care and the company’s next phase of growth.”
Mike Kaplan, Partner at NewSpring and Board Member of Honest Health
“Health systems and providers face growing demands to improve outcomes and manage costs, accelerating the need for value-based care models anchored in strong clinical leadership, proven processes, and scalable infrastructure.”
Rob Bessler, M.D., Chief Executive Officer of Honest Health
“Honest Health was created with the conviction that real transformation in healthcare only happens when providers have the tools, accountability and support to focus on value over volume,” “In a short period of time, the company has demonstrated that belief in action, delivering measurable improvements in patient outcomes, strengthening operational performance and building a more sustainable path forward for providers. We’re proud of what the team has built and excited to continue building alongside them and NewSpring as Honest Health enters its next phase of growth.”
Matt Kim, Partner at Rubicon Founders
