- Digital health company Carrum Health announced it has closed $40 million in Series A funding led by Tiger Global Management. These are the details.
Carrum Health — a digital health company that connects employers and employees to Centers of Excellence (COEs) through a technology-powered platform for better, more cost-effective healthcare — announced it has closed $40 million in Series A funding led by Tiger Global Management with participation from GreatPoint Ventures and Cross Creek and return investors Wildcat Venture Partners and SpringRock Ventures.
With this round of funding, Carrum Health will expand its offerings to more employers, provide access to additional healthcare services, and enhance technology to support its roster of clients and providers. The Carrum Health App eliminates surprise medical bills, giving patients transparent pricing from the start and guiding them through their surgery journey. And the Carrum Health App makes planning a surgery easier and offers a personalized, guided experience for patients, including post-operative daily check-ins.
Carrum Health is applying the latest technology to enhance care, increase access, and improve outcomes. And with its digital marketplace, patient app and AI-driven insights, the company delivers value-based care that is more economical for self-insured employers, increases employee access to top-performing providers and drives practice growth for providers.
Carrum Health has developed the first-ever digital marketplace that enables employers to purchase healthcare services directly from top providers for a bundled price. And this approach helps employers curb rising healthcare spending at a time when surgery-related costs account for as much as 50% of expenses with 25% of surgeries not being medically necessary according to data from Carrum Health.
The company’s COE digital platform eliminates the complexities of co-pays, deductibles, and coinsurance while ensuring that patients get exceptional care, leading to better outcomes at a lower predictable cost. And with this model, Carrum Health’s providers offer a 30-day warranty on each procedure including any costs associated with the care. Carrum Health evaluates both the COE and the surgeon with a proprietary 50-point evaluation process, ensuring only the top 10% of providers are invited to join the platform.
Over the last year, the number of Fortune 500 companies utilizing Carrum Health has doubled with the addition of dozens of organizations in retail, manufacturing, communications, insurance, education, and government. And since its launch in 2014, the company has broadened its COE network with new partners including Johns Hopkins HealthCare LLC, Mayo Clinic, and Tenet Healthcare.
“Working with Carrum, self-insured companies can offer their employees the best care from top surgeons while effectively managing their spend. Carrum is going after a $100 billion market opportunity, and we’re very excited to partner with Sach and his team.”
— Scott Shleifer, partner at Tiger Global Management
“Carrum Health caught our attention because they have created a technology solution that, when combined with a high-touch personalized service, is already bending the cost curve and improving the overall health and wellbeing of surgery populations. Carrum Health is changing both sides of the healthcare market, impacting how providers can build their practices and how employers procure and pay for their services. We are excited to help them expand their footprint nationally.”
— Ray Lane, managing partner at GreatPoint Ventures
“Making high-quality healthcare more affordable and easier to access is what drives us every day at Carrum Health. For years, the industry has talked about redesigning healthcare to benefit patients, but the only way to really do that is to tackle the underlying economics of care, a truly difficult task. At Carrum Health we’re solving just that. Employers now have a modern, technology-driven solution to help patients get better care without financial headache and we’re not stopping at surgery. In 2021 we’ll be expanding our reach and impact with additional services. It’s such an honor to pave the way for a better healthcare future and we’re so excited for what’s to come.”
— Sach Jain, CEO and founder of Carrum Health