Garner Health announced it has closed a $100 million Series E funding round at a $2.74 billion valuation. The round was led by Index Ventures with participation from existing investors including Kleiner Perkins, Redpoint Ventures, Thrive Capital, Sequoia Capital, Founders Fund, and Kaiser Permanente Ventures.
The company said the financing reflects growing demand from employers, health plans, and healthcare systems seeking ways to reduce healthcare costs while helping employees identify higher-quality doctors. Garner now partners with nearly 800 customers, including USA Today, Paylocity, and the University of Oklahoma.
Garner reported approximately $200 million in gross annual recurring revenue and said revenue has more than doubled annually for five consecutive years. The company also recently completed a second employee tender offer alongside the financing round.
Garner’s platform analyzes billions of healthcare data points to identify providers that deliver strong patient outcomes. The company then aligns incentives so employees and their families can access those doctors with reduced out-of-pocket costs. According to Garner, employers using the platform see an average 12% reduction in annual healthcare spending.
The company said its platform is powered by a claims database containing more than 60 billion medical records from 320 million patients, alongside more than 550 proprietary clinical metrics. Garner noted that more than 46% of eligible members actively use the platform.
Garner is also expanding its artificial intelligence initiatives through two major products. The newly developed Garner Research Agent uses AI to review medical literature and help measure physician quality and performance at scale. Meanwhile, the recently launched Garner Assistant helps members navigate healthcare tasks such as finding doctors, booking appointments, reviewing claims, and understanding health plan coverage.
The company said it currently serves more than 2.5 million people and continues to expand partnerships with healthcare providers including Mercy, Atlantic Health System, Teladoc Health, and Marathon Health.
Garner said the new capital will be used to expand its provider quality platform, accelerate AI-powered product innovation, and grow its member base.
KEY QUOTES:
“Healthcare doesn’t change through incremental tweaks—it changes when consumers finally have the information and incentives they need to make better decisions about their care. Our mission at Garner is to fundamentally realign the system around quality by empowering people to choose the doctors who deliver the best outcomes. When you give consumers the right data and align incentives around better care, the entire healthcare system will change for the better.”
Nick Reber, CEO, Garner Health
“The American healthcare system pays doctors to do things to you, not for you. Garner is quietly fixing that. By using AI to make physician quality measurable for the first time, they’ve built the market mechanism healthcare always needed, one where employers, hospitals, and patients can finally see who delivers better outcomes, and the system rewards them for it. It’s one of the most important applications of AI in healthcare today.”
Jahanvi Sardana, Partner, Index Ventures
“At ADM, we’re committed to creating a culture of care where our employees feel supported in every aspect of their wellbeing. Navigating healthcare shouldn’t add stress to already busy lives, and Garner has been an important partner in helping us remove that friction, connecting our people to high-quality, eligible providers and making care more accessible. Together, we’re helping ensure our employees can focus on what matters most.”
Molly Strader Fruit, VP Of Total Rewards, Archer-Daniels-Midland
