Waltham, Massachusetts-based Medicare Advantage company Devoted Health is an online health startup company that has raised $300 million in Series B led by Andreessen Horowitz. New investors Premji Invest and Uprising also participated in this round along with previous investors Venrock and F-Prime Capital Partners. It is believed that this round of funding valued the company at $1.8 billion.
Devoted Health works with Medicare beneficiaries to access care through its physical network. And Devoted Health told TechCrunch that the company is committed to treating customers as if they were members of its employees’ own families.
Recently, the company started rolling out its Medicare Advantage plan for seniors in the Broward, Hillsborough, Miami-Dade, Osceola, Palm Beach, Pinellas, Polk, and Seminole counties in Florida — which will start being provided on January 1, 2019. Devoted Health’s goal is to roll out insurance plans to seniors nationwide.
Devoted Health was created to launch a healthcare solution that integrates the payor and provider. Devoted Health is the payor that is responsible for the full cost of its members’ care through the Medicare Advantage program. And Devoted Health partners with top healthcare providers in a way that empowers them to deliver the best possible care for members. Plus Devoted Health is also a provider that delivers a set of care services that wraps around the existing healthcare system such as dedicated health guides to help members navigate the complexities around the medical system. The company also has a medical group for those in the greatest need who can benefit from the care given to them at home.
Devoted Health was founded by brothers Todd Park (executive chairman) and Ed Park (CEO). Todd Park — who previously worked as the U.S. chief technology officer under the Obama administration — previously co-founded two publicly traded companies, including Athenahealth and Castlight Health. And Ed Park served as the COO of Athenahealth and was on the board of directors of Castlight for several years. Venrock partner and Devoted Health’s founding investor Bryan Roberts and Devoted Health’s chief medical officer Bob Kocher both are part of the founding team as well.
“People are stuck ping-ponging among an assortment of well-meaning primary care doctors, specialists, hospitals, and other facilities, resulting in a patient experience that is highly uncoordinated, fragmented, and reactive, compounded by administrative hassles that seem to emerge from every corner,” said Ed Park in a blog post on Medium. “There is nothing more frustrating than witnessing a loved one go through such an experience — one fraught with missed connections, information gaps, confusion, huge anxiety, and all too often, the right care not being delivered at the right time. Care that could have prevented illness and complications. Care that could have saved a life. We need better. Our loved ones deserve better.”
Former Wayfair and Athenahealth CTO and Jeremy Delinsky was hired as COO as Devoted Health. DJ Patil, the former data scientist at the White House, serves as Devoted Health’s head of technology. And former Universal American CFO Adam Thackery was brought on as Devoted Health’s chief financial officer.
Some of Devoted Health’s board members include former Health and Human Services Secretary Kathleen Sebelius and former Senate Majority Leader Bill Frist. In conjunction with this funding round Andreessen Horowitz’s Vijay Pande will be joining the board of directors at the company.
Prior to this round, Devoted Health raised $69 million across two funding rounds in 2017 from investors like Oak HC/FT, Venrock, F-Prime Capital Partners, Maverick Ventures, and Obvious Ventures.
