- Leading healthcare technology company Stellar Health announced it raised over $60 million. These are the details.
Stellar Health — a leading healthcare technology company — announced it raised over $60 million in Series B funding. The funding round was led by General Atlantic with participation from Point72 Ventures and Primary Venture Partners — who led Stellar’s Series A financing in 2020. And new investors also include Mike Pykosz and Geoff Price, two of the co-founders of Oak Street Health — a leading network of value-based primary care centers for adults on Medicare.
With the additional funding round and resources provided by this new round of funding, the company plans to focus on growing and investing in its team, as well as advancing product development, engineering, and operations initiatives, all to support the expansion of its differentiated services to new and existing markets.
Launched in 2018 by leaders in the healthcare and technology spaces, Stellar empowers providers to deliver high-quality, value-based care through their innovative, cloud-native point-of-care platform. And by integrating patient data, tracking provider workflows, and pushing meaningful, actionable insights directly to providers and practice staff, the Stellar platform helps primary care providers achieve value-based care outcomes for their patients.
A significant example of the platform in use comes from a primary care physician who had a scheduled annual wellness visit with a 77-year-old male patient in the Fall of 2020. And the patient came in with no indication of any cardiovascular or stroke risk and the physician was unaware of a diagnosis of stroke from 6 years prior.
Using the Stellar platform – with its advanced system of analytics and identification – the primary care physician was informed of the patient’s heightened risk and had the right incentives to offer meaningful care at a critical time, placing the patient on secondary prevention treatments. And this intervention, with the right behavioral economics, changed the patient’s trajectory forever. And Stellar simplifies value-based care effectively by engaging and incentivizing providers to take actions that reduce inefficient medical utilization, improve documentation accuracy, advance the quality of care delivered, and in turn compensate providers for each action in real time.
Since the beginning of 2020, the company has increased its robust payor and provider network, with more than 60 collaborations across 20 states, managing more than 375,000 patients in total. And with this capital raise, Stellar expects to continue expanding into new markets, as well as grow its team to support product development, engineering, and operations.
This year alone, Stellar has tripled in size to over 90 employees and plans to double the size of its team within the next year. And Stellar Health has also seen strong performance improvement and high user engagement with its modern platform, including a weekly active rate of greater than 80%, medical expense ratio improvement of greater than 15%, and improvement of Medicare Advantage Star ratings of greater than one full Star.
“The healthcare landscape is experiencing a seismic shift towards favoring systems that motivate and allow providers to focus on what matters most – patients. Stellar’s partnership with General Atlantic aims to further accelerate our growth trajectory to expand both internally and externally, and to address workflow evolution. It will also support our efforts to activate practice staff by solving economic barriers that exist in the shift to value-based care. We will continue to evolve our product in ways that will improve the healthcare experience for providers and patients alike.”
— Michael Meng, Co-Founder and CEO of Stellar Health
“Stellar Health has developed an intuitive, modern, and behavior-focused platform that enables a broad continuum of providers to advance patient outcomes. In just three years, Stellar Health has established itself as a leading player in the field, delivering significant value to its clients and provider network. As long-standing advocates for the shift to value-based care, we are excited to partner with the Stellar Health team in further developing its platform.”
— Robbert Vorhoff, Managing Director and Global Head of Healthcare at General Atlantic
“Stellar’s technology platform uses data to make recommendations and incentivize provider decisions. We believe this unique data-driven approach will compound the impact on patient outcomes over time. We’re excited to continue to support Michael and his team as they grow their business.”
— Sri Chandrasekar, Partner at Point72 Ventures
“Traditional fee-for-service healthcare has not historically equipped primary care providers with the right tools and framework to help their patients achieve the highest quality care and best health outcomes. Stellar Health’s innovative platform combines proven value-based care knowledge with simple, meaningful actions to bring value-based care to broad groups of patients, including those on Medicare, Medicaid, and individual or commercial health plans.”
— Mike Pykosz, CEO of Oak Street Health