- Health benefits solution company Collective Health announced it raised $205 million in funding
- This round of funding was led by the SoftBank Vision Fund
- PSP Investments, DFJ Growth, G Squared, Founders Fund, GV, Maverick Ventures, Mubadala Ventures, NEA, Sun Life, and other leading investors joined this round as well
Collective Health is a health benefits solution for leading U.S. companies that recently announced it raised $205 million in funding led by the SoftBank Vision Fund in order to advance the expansion of the $1.2 trillion employer health insurance industry.
There was also additional participation from PSP Investments, DFJ Growth, and G Squared. And existing investors Founders Fund, GV, Maverick Ventures, Mubadala Ventures, NEA, Sun Life, and other leading investors also joined.
With this round of funding, Collective Health is going to accelerate adoption, deep partnerships, advance product development, reduce administrative burden and waste, guide members to treatments, and deliver insights to employers.
Collective Health plans to accelerate the adoption of its enterprise healthcare platform with employers across the U.S. and deepen strategic partnerships across the industry. Plus the company is going to deliver even greater technology capabilities for addressing fundamental health insurance service issues that plague U.S. consumers and employers alike.
“We’re appreciative of our investors, both new and returning, in their commitment to supporting our mission to fix the deepest rooted problems in healthcare today,” said Collective Health CEO and co-founder Ali Diab. “We’re excited to have the SoftBank Vision Fund lead the round given their proven track record of supporting category-defining companies, and they share our vision for a better healthcare experience. Whether working with more networks or helping facilitate direct relationships between employers and provider systems, we will continue to set the standard for the industry with a focus on the customer, providing the healthcare experience we all deserve.”
Collective Health is going to build upon the increasing demand from American employers looking to address the increasing complexity and cost of healthcare. And Collective Health is accelerating growth across all 50 states by strengthening its sales, engineering, and customer experience teams in San Francisco, Chicago, and Lehi.
“With U.S. healthcare costs at $3.65 trillion in 2018, Collective Health is reinventing the healthcare experience for companies and their employees. Their innovative business model and technology platform are not only helping employers understand and optimize their healthcare spend, they are also providing employees with a better healthcare experience,” added Deep Nishar — Senior Managing Partner at SoftBank Investment Advisers. “The company has continued to scale its business across U.S. employers, and we are excited to help them drive further innovation and adoption in the approximately $1.2 trillion employer health insurance industry.”
Collective Health plans to make health insurance work for everyone. With over 200,000 lives across more than 45 enterprise clients in diverse industries like technology, agriculture, entertainment, retail, etc., Collective Health’s growth has gone from early adopters to the mainstream since it launched in 2013.
“Meaningful improvements in healthcare aren’t going to come from incumbents or consortiums,” explained NEA’s General Partner and Head of Healthcare Services and Healthcare IT investing Mohamad Makhzoumi. “The healthcare industry needs a new foundation to run effectively and fill the gaping holes where proper technology doesn’t currently exist. We continue to double down on our partnership with Collective Health because it’s the only company that has built a software platform capable of reimagining the industry by focusing on the customer experience.”
Collective Health is planning to add new partnerships to its list of 80 integrated health partners on its open platform. This includes new local and national medical PPO networks, provider systems that serve the commercial market, and an increasing number of digital health solutions that allow seamless integration for both employer reporting and member engagement.
“Sometimes working in benefits can feel like you’re on the hamster wheel of problem-solving,” said Alice Vichaita, Global Head of Benefits at Pinterest. “People usually don’t remember their benefits on paper, but everyone remembers their experience, and we’re always working to support our employees in the best way possible. Collective Health is unparalleled and well beyond the industry standard, providing us the ability to better serve our people’s health demands while providing the type of healthcare experience our people want.”
Collective Health is rebuilding how a health plan works for both employers and the populations they cover in a unified software platform. The company has four patents pending across its product suite. This round of funding will support Collective Health’s expansion of its product and engineering team to accelerate the development in core areas.
And by continuing to invest in improved claims and payments technology to enhance decades-old systems, Collective Health is planning to enable more transparency around the cost of care, faster payments, improved member navigation, and rapid fraud detection.
As a result, all employer clients and members can make more timely and informed healthcare decisions and receive the information they need when they need it.
Collective Health’s patent-pending machine learning engine — which is known as CH Cortex — is able to identify individual member care needs from chronic disease management to radiology services and beyond. And the Collective Health app and Member Advocates guides people to appropriate partners, facilities, and providers for treatment.
And Collective Health Insights also gives employers and their consultants a window into the trends that drive healthcare spend. For most companies, the size of this spend is second to payroll. And Insights will launch new features and datasets that extend the Collective Health commitment to helping employers better understand and manage emerging health issues so that they can move from reactive to proactive in order to provide people with better access to care.
