Centivo, a healthcare company focused on making high-quality healthcare more affordable for employers and their employees, announced it has secured $75 million in equity and debt financing. The funding includes participation from new strategic investors Cone Health Ventures and MemorialCare Innovation Fund, as well as existing financial investors including B Capital, Cox Enterprises, F-Prime Capital, Ingleside Investors, and Morgan Health (a division of JPMorgan Chase). Trinity Capital and ongoing banking partner JPMorgan Chase provided the debt facilities. This funding will enable Centivo to accelerate its mission of making high-quality healthcare more accessible and affordable to working families.
The affordability crisis for working families continues unabated with rising deductibles. Last year, the average deductible for family coverage among enrollees in plans with a deductible was $3,811, and over 8 million Americans have started crowdfunding campaigns tied to medical expenses.
Centivo is working to help employers manage these costs through its three-part solution proactively: 1.) An advanced primary care-centered model, anchored by Centivo Care, the organization’s in-house virtual primary care practice; 2.) Direct contracts with leading accountable care organizations (ACOs) in 18 major markets committed to enhanced access and high-value care, and 3.) A transparent and tech-enabled member engagement and plan administration platform. Through this funding, Centivo will enhance and scale its product and technology and forge new strategic partnerships with health systems to deliver financial savings and improved patient outcomes, reducing annual employee out-of-pocket costs by nearly $1,200.
Last year alone, Centivo’s health plans achieved a 71 percent reduction in member out-of-pocket costs compared to the plans they replaced. This occurred while also typically saving employers 15% or more and increasing the utilization of primary and specialty care.
At the center of the Centivo model is a “win-win” for progressive employers and value-based providers dedicated to cost-effectiveness and superior clinical outcomes. Further, following Centivo’s acquisition of employer-centered virtual-first medical provider Eden Health in May, the company has supplemented its provider partners’ capabilities with an at-scale PCMH-certified virtual primary care practice that includes access to integrated behavioral health within its newly expanded platform.
The company also serves Americans in all 50 states and across various industries, including automotive, retail, transportation, manufacturing, financial services, school districts, and more.
KEY QUOTES:
“We are thrilled to have this level of financial support toward the continued growth of our radically affordable healthcare solution in America. 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.”
-Ashok Subramanian, CEO and Co-Founder of Centivo
