Onos Health has raised $17 million in Series A financing to accelerate adoption of its behavioral health clinical intelligence platform for health plans. Costanoa led the round, with participation from Flare Capital Partners and strategic investment from CVS Health Ventures.
The financing follows growing adoption among U.S. health plans, including Aetna, which is using Onos’ AI platform to improve behavioral health outcomes while reducing total cost of care.
Behavioral health has become one of the largest challenges facing the U.S. healthcare system.
More than 23% of U.S. adults experience a mental health condition each year, while direct medical spending on behavioral health exceeds $140 billion annually.
Despite that level of spending, health plans often lack the clinical visibility needed to understand care quality across their member populations.
Much of the challenge comes from the way behavioral health information is recorded.
Onos said more than 70% of behavioral health quality signals are contained in unstructured clinical documentation that traditional data systems have difficulty analyzing.
The company’s platform combines claims, utilization data, clinical documentation and quality guidelines to create a more complete view of behavioral health treatment pathways.
Onos uses proprietary AI models to analyze both structured and unstructured information and identify treatment patterns, gaps in care and areas where clinical quality can be improved.
The platform is designed to help health plans move from reactive oversight toward proactive collaboration with behavioral health providers.
Onos said customers using its platform have achieved a 35% improvement in adherence to clinical standards.
The company also reported a 75% improvement in clinical review efficiency, helping reduce delays in care.
Health plans using the platform have additionally achieved more than a 6% reduction in behavioral health program costs within 12 months through improvements in clinical quality.
Onos developed what it describes as the largest behavioral health care quality database to train and support its AI platform.
The company worked with health plans and medical leaders to develop models capable of handling the complexity of behavioral health diagnoses, treatment approaches and service lines.
The technology is now deployed across both national and regional health plans.
Onos said three of the six largest health plans in the U.S. use its platform.
The company believes better analysis of behavioral health data can enable payers to identify higher-quality and more cost-effective treatment options while reducing administrative work for both health plans and providers.
The new funding will support broader adoption of the platform as health plans look for ways to improve behavioral health quality, affordability and provider collaboration.
KEY QUOTES:
“Behavioral health care quality is difficult to understand and manage because it is recorded in unstructured clinical documentation which legacy solutions cannot process. AI has the potential to fundamentally transform how health plans manage care by making clinical quality and care pathways measurable at scale.”
“Onos leverages proprietary AI to give plans unprecedented visibility into their populations, enabling them to proactively partner with providers, eliminate manual administrative work, and improve outcomes while driving efficiency across the healthcare system.”
Akshay Agarwal, Co-Founder And CEO Of Onos Health
“Onos Health helps surface actionable clinical insights from data that has historically been difficult to interpret. It provides a clearer understanding of treatment patterns and quality of care and supports more informed decision-making and collaboration with behavioral health care providers.”
Alyssa Reisner, Vice President And General Partner At CVS Health Ventures
“Behavioral health is one of the largest and least understood categories in healthcare, representing billions of dollars in spend and enormous variation in care costs with low correlation to care quality.”
Amy Cheetham, Partner At Costanoa
“Onos is giving health plans the behavioral health clinical intelligence they need to move from reactive oversight to value-driven healthcare. Health plans using Onos’ AI-powered platform are seeing significant improvement in clinical quality and affordability, and we are excited to partner with Akshay and the team as they build the category.”
Margaret Malone, Partner At Flare Capital Partners
