SAN FRANCISCO, Jan. 7, 2021 /PRNewswire/ -- Carrum Health, the first digital health company connecting employers and employees to Centers of Excellence (COEs) through a technology-powered platform for better, more cost-effective healthcare, today closed $40 million in Series A funding led by Tiger Global Management LLC, with participation from GreatPoint Ventures and Cross Creek and return investors Wildcat Venture Partners and SpringRock Ventures. Carrum Health will use this funding to expand its offerings to more employers, provide access to additional healthcare services and enhance technology to support its fast-growing roster of clients and providers.
Carrum Health is applying the latest technology to enhance care, increase access and improve outcomes. With its digital marketplace, patient app and AI-driven insights, the company delivers value-based care that is more economical for self-insured employers, increases employee access to top-performing providers and drives practice growth for providers.
A Digital Marketplace for Premier Care
Carrum Health developed the first-ever digital marketplace that enables employers to purchase healthcare services directly from top providers for a bundled price. This approach helps employers curb rising healthcare spending at a time when surgery-related costs account for as much as 50% of expenses, with 25% of surgeries not being medically necessary, according to data from Carrum Health.
"Working with Carrum, self-insured companies can offer their employees the best care from top surgeons while effectively managing their spend. Carrum is going after a $100 billion market opportunity, and we're very excited to partner with Sach and his team," said Scott Shleifer, partner at Tiger Global Management.
Carrum Health's COE digital platform eliminates the complexities of co-pays, deductibles and coinsurance, while ensuring that patients get exceptional care, leading to better outcomes, at a lower, predictable cost. With this model, Carrum Health's providers offer a 30-day warranty on each procedure, including any costs associated with the care. Because clinical quality is of utmost importance, Carrum Health evaluates both the COE and the surgeon with a proprietary 50-point evaluation process, ensuring only the top 10% of providers are invited to join the platform.
"Carrum Health caught our attention because they have created a technology solution that, when combined with a high-touch personalized service, is already bending the cost curve and improving the overall health and wellbeing of surgery populations," said Ray Lane, managing partner at GreatPoint Ventures. "Carrum Health is changing both sides of the healthcare market, impacting how providers can build their practices and how employers procure and pay for their services. We are excited to help them expand their footprint nationally."
AI-Driven Insights for Benefits Managers
Carrum Health saw an opportunity to not only change how healthcare is paid for, but also how it is delivered. At the heart of Carrum Health's marketplace platform is a layer of analytics that integrates data from numerous sources, including claims information, to monitor cost and quality. Using machine learning, Carrum Health identifies the people most at risk for surgery and utilizes post-discharge data collection to monitor recovery and prevent complications that contribute to readmissions.
A Connected Mobile App Puts Power in Patient's Hand
The platform is connected to the Carrum Health mobile app, which provides patients with the power to manage their own health by guiding them through all aspects of their care journey. Patients also have access to an expert care specialist who assists them throughout the process.
"Making high-quality healthcare more affordable and easier to access is what drives us every day at Carrum Health," said Sach Jain, CEO and founder of Carrum Health. "For years, the industry has talked about redesigning healthcare to benefit patients, but the only way to really do that is to tackle the underlying economics of care, a truly difficult task. At Carrum Health we're solving just that. Employers now have a modern, technology-driven solution to help patients get better care without financial headache and we're not stopping at surgery. In 2021 we'll be expanding our reach and impact with additional services. It's such an honor to pave the way for a better healthcare future and we're so excited for what's to come."
Over the last 12 months, the number of Fortune 500 companies relying on Carrum Health has doubled with the addition of dozens of organizations in retail, manufacturing, communications, insurance, education and government. Since its launch in 2014, the company has broadened its COE network with new partners, including Johns Hopkins HealthCare LLC, Mayo Clinic and Tenet Healthcare. This rapid expansion has been fueled by proven results coming from Carrum Health's focus on clinical quality and its ability to immediately cut employers' surgery costs by as much as half, a priority that has become more critical for companies struggling with increasing healthcare costs related to COVID-19.
About Carrum Health
Carrum Health was founded in 2014 with a mission to "bring common sense to healthcare" through a value-based healthcare model that benefits families, employers and providers. Headquartered in South San Francisco, Carrum's award-winning surgery benefits platform connects self-insured employers with top providers under standardized bundled payment arrangements to better manage healthcare costs. By aligning provider incentives with quality performance, Carrum drives improvements in patient experience and health outcomes. Customers include large Fortune 500 companies and public sector organizations. For more information, visit carrumhealth.com.
About Tiger Global
Tiger Global Management, LLC is an investment firm focused on public and private companies in the global internet, software, consumer and financial technology sectors. Since 2003, its private equity business has invested in hundreds of companies across more than 30 countries, including investments ranging from Series A to pre-IPO. Such investments have included Spotify, Harry's, Warby Parker, Peloton, JD.com, Facebook, LinkedIn, Yandex, Mail.ru Group, Despegar, Ola and Flipkart. Tiger Global Management, LLC, was founded in 2001 and is based in New York; it has affiliate offices in Hong Kong, Singapore, Bangalore and Melbourne.
SOURCE Carrum Health