Employer Direct Healthcare (EDH) – a leading specialty healthcare network solution – recently announced a $92 million secondary investment from global software investor Insight Partners, bringing the company’s valuation to $1 billion. And EDH’s existing institutional investors, Serent Capital, Redmile Group, and Dundon Capital, will maintain their ownership interest in the business.
EDH quietly grew to become one of the largest participants in the specialty networks, centers of excellence, and bundled payments categories for employers who self-fund healthcare coverage for their employees. Currently, EDH serves hundreds of self-funded plan sponsors across 1,000+ employers (including approximately two dozen Fortune 500 employers and three dozen public sector entities), representing over 4 million people across the U.S. The EDH network includes over 3,000 surgeons and oncologists and over 500 facility partners, spanning 157 metropolitan regions across the country – all of whom have gone through a rigorous selection process designed by EDH’s medical advisory board.
In the past 12 years, EDH has facilitated over 43,000 surgical journeys, significantly reducing members’ financial burdens by an average of $4,000. While doing this, EDH has lowered overall healthcare costs for employer clients by a total of about $700 million since inception and will reduce overall healthcare costs for clients by approximately 2% in 2023.
For the coming year, EDH will continue to build on market momentum and strong overall growth, including expansion of Cancer Care Direct, the industry’s first end-to-end oncology solution, and several key partnerships with national health plans, navigators, and other industry-leading employer solutions.
EDH is also announced a number of key executive hires who bring deep, differentiated experience across healthcare, benefits consulting, technology, and government, including Chief Growth Officer Jamie McLeod (previously held senior roles at One Medical and Virgin Pulse); Chief Product Officer Jeremy Leventhal (previously held senior product roles at Hinge Health and Springbuk); Chief Client Officer Lindsey Conon (previously SVP of Account Management at Progyny); Chief Marketing Officer Shelly Towns (previously CMO at Marathon Health); Head of Communications Amy Dudley (served in top communications roles for then-Vice President Joe Biden, U.S. Senator Tim Kaine and the Chan Zuckerberg Initiative); Nicki MacManus, GM of EDH’s oncology solution (previously had executive leadership roles at CVS including GM of CVS Kidney Care); and Head of Channel Tim Kelly (previously Chief Commercial Officer at Carrot Fertility and President of National Accounts at Aetna, a CVS Company). Other recent hires include senior leaders from KindBody, WTW and WithMe Health.
KEY QUOTES:
“For too many Americans – even those with insurance – the financial and logistical burdens of a cancer diagnosis or need for surgery can be earth shattering. Every day, EDH is serving people at their most vulnerable – guiding members to high-quality providers that are close to home, at little or no cost to them. We’re grateful for Insight Partners’ significant vote of confidence as we continue to deliver excellent, affordable, and accessible specialty care for more communities. Further, this investment provides an attractive outcome for some of our earliest backers, including TEXO Ventures, while bringing Insight’s world-class capabilities to bear for the future of the business.”
- John Zutter, CEO of EDH
“EDH represents the next generation of value-driven healthcare, attacking the largest sources of spend for U.S. employers – surgery and cancer – with a laser focus on quality and cost for clients and their employees. EDH is a rare example of the right management team, the right model, and the right technology to truly change the outcomes and business of healthcare.”
- Scott Barclay, Managing Director at Insight Partners
“Partnering with EDH has yielded very positive outcomes for our AutoZoners and they often share with us their wonderful experiences with SurgeryPlus. EDH helps to ensure that we’re able to provide access to high-quality, affordable surgical care for our AutoZoners across the U.S..”
- Matt Harmon, VP of Compensation, Benefits and HRIS, Customer Satisfaction at AutoZone
