Employer Direct Healthcare, a network company for employers who self-fund healthcare coverage, announced it garnered $92 million in secondary investment from Insight Partners, bringing its valuation to $1 billion.
Existing investors Redmile Group, Dundon Capital and Serent Capital will continue to receive ownership interest in the business.
The company also announced the hiring of numerous members of its executive team.
Jamie McLeod will join the company as its new chief growth officer. McLeod previously held senior roles at One Medical and Virgin Pulse.
Jeremy Leventhal, formerly a senior product leader at Hinge Health and Springbuk, will be its chief product officer.
Amy Dudley, now head of communications, previously worked with then-Vice President Joe Biden, U.S. Senator Tim Kaine and the Chan Zuckerberg Initiative, and Nicki MacManus, general manager of the company’s oncology solution, previously held executive roles at CVS.
WHAT IT DOES
Employer Direct Healthcare offers a specialty network and payment services to employers who self-fund healthcare coverage for their employees.
It provides digital health offerings, including SurgeryPlus, which connects patients to a network of surgeons and offers personal care advocates that support patients’ surgical care journey.
The Texas-based company also offers an oncology platform dubbed Cancer Care Direct that helps guide patients in accessing quality oncology care with the aim of lowering costs for employers and patients.
The funds will be used to expand the Cancer Care Direct platform and grow partnerships with other employer solutions, navigators and national health plans.
“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, said in a statement.
MARKET SNAPSHOT
Last year, Employer Direct announced it was partnering with OneOncology, a national platform for community oncology practices, to help lower cancer care costs for employers and provide EDH’s members with broader access to precision medicine, emerging therapies and clinical trials.
Another company working with employers on self-funded insurance is California-based Carrum Health, a value-based platform that allows self-funded employers to buy specialty care, focusing on surgical and cancer care.
In September, Carrum announced it joined the White House-led Cancer Moonshot CancerX initiative, uniting with cross-disciplinary stakeholders to drive innovation in cancer care.
In May, the company announced it received $45 million in Series B funding, which it would use to expand its oncology benefits offerings and scale its surgical care service lines.
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