The Company is Doubling Down on its Mission of Building a Radically Affordable Healthcare Solution That is Beneficial to Employers and Employees Alike
BUFFALO, N.Y.--(BUSINESS WIRE)--Sep. 24, 2024--
Centivo, a pioneering healthcare company dedicated to making high-quality healthcare more affordable for employers and their employees, today announced it has secured $75M in equity and debt financing. The financing includes participation from new strategic investors Cone Health Ventures and MemorialCare Innovation Fund, as well as existing financial investors including B Capital, Cox Enterprises, F-Prime Capital, Ingleside Investors, and Morgan Health (a division of JPMorgan Chase). Debt facilities are provided by Trinity Capital and ongoing banking partner, JPMorgan Chase. This capital will enable Centivo to accelerate its mission of making high-quality healthcare more accessible and affordable to working families.
Healthcare costs in the U.S. continue to rise - in 2022, Americans spent over $4.5 trillion on healthcare - a majority of which is paid for by US employers. At the same time, the affordability crisis for working families continues unabated with rising deductibles. In 2023, the average deductible for family coverage among enrollees in plans with a deductible was $3,811 and over 8 million Americans have started crowdfunding campaigns tied to medical expenses. Recognizing this systemic problem within the U.S. healthcare system, Centivo is deeply committed to creating a solution that provides every working American with the quality, affordable healthcare they deserve. Centivo is working to proactively help employers manage these costs through its three-part solution: (1) an advanced primary care centered model, anchored by Centivo Care, the organization’s in-house virtual primary care practice, (2) direct contracts with leading accountable care organizations (ACOs) in 18 major markets committed to enhanced access and high-value care, and (3) a transparent, tech-enabled member engagement and plan administration platform. With this funding, Centivo will enhance and scale its product and technology, and forge new strategic partnerships with health systems to deliver financial savings and improved patient outcomes, reducing annual employee out-of-pocket costs by nearly $1,200.
"We are thrilled to have this level of financial support toward the continued growth of our radically affordable healthcare solution in America”, said Ashok Subramanian, CEO and Co-Founder of Centivo. "Our next step is to expand the number of Americans who can finally have a health plan that they can afford to use and to make more heroes out of those employers who are restoring healthcare affordability in their workplaces."
In 2023 alone, Centivo’s health plans achieved a 71 percent reduction in member out-of-pocket costs compared to the plans they replaced. This occurred while also typically saving employers 15% or more and increasing utilization of primary and specialty care. At the heart of the Centivo model is a “win-win” for progressive employers and value-based providers dedicated to cost-effectiveness and superior clinical outcomes. Further, following Centivo’s acquisition of employer-centered virtual-first medical provider Eden Health in May, the company has supplemented its provider partners’ own capabilities with an at-scale PCMH-certified virtual primary care practice that includes access to integrated behavioral health within its newly expanded platform.
The company serves Americans in all 50 states and across a diverse array of industries, including automotive, retail, transportation, manufacturing, financial services, school districts, and more. To learn more about Centivo, visit www.centivo.com.
About Centivo:
Centivo’s mission is to bring affordable, high-quality healthcare to the millions of workers who struggle to pay their medical bills. Centivo’s innovative health plan is designed specifically to curb the inefficiency and waste that exist in today’s employer-sponsored health plans. In partnership with leading local health systems, Centivo’s primary care-centered health plan offers employers a replacement to traditional health insurance carriers, lowering the total cost of care by 30 percent or more while delivering tangible value to employers, employees, and its partner health systems. To learn more about Centivo, please visit: https://centivo.com/.
About Cone Health Ventures:
Cone Health Ventures identifies entrepreneurial companies with solutions that address the greatest needs and top strategic aims of Cone Health. By creating partnership agreements to align the interests of all parties, Cone Health Ventures accelerates commercialization into the broader healthcare market to create value for the companies, Cone Health, and our patients.
About MemorialCare Innovation Fund:
MemorialCare Innovation Fund (MCIF) brings strategic investment funding to accelerate the development of companies in the healthcare information technology, healthcare services, and medical device sectors that can advance high-quality, effective healthcare.
About Trinity Capital Inc.:
Trinity Capital Inc. (Nasdaq: TRIN), an internally managed business development company, is a leading provider of diversified financial solutions to growth-stage companies with institutional equity investors. Trinity Capital's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans and equipment financings and equity-related investments.
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https://www.businesswire.com/news/home/20240924454675/en/
SolComms
Bruno Solari
centivo@solcomms.co
Source: Centivo
