PHOENIX, May 15, 2019 /PRNewswire/ -- Following a year of explosive growth, Solera Health today announced a $42 million funding round led by HCSC Ventures, a wholly-owned subsidiary of Health Care Service Corporation that invests in innovative health care companies working to improve the quality of care, lower medical and administrative costs, reduce complexity and improve consumer experience. The Series C round, Solera's largest to date, brings its total funding to $72 million.
This latest capital infusion will allow the Phoenix-based company to extend the impact of its novel marketplace and payment innovation model which allows health plans and employers to leverage a network of community and digital health solutions paid through medical claims for achieving clinical outcomes. The company currently has more than 60 million lives under contract.
Solera is committed to changing lives by guiding people to better health in their communities. The company has proven that simply matching people to the program best fit to their needs enhances engagement, drives program success and significantly lowers health care costs. Over the past 12 months, Solera's network has evolved to support a broader array of lifestyle modification programs, including diabetes management, hypertension, stress, sleep, tobacco cessation, and weight management. This new round of funding will allow Solera to scale beyond its proven model for chronic disease prevention and management to address behavioral health and social determinants of health (SDOH) including food insecurity, medically tailored meals, transportation, falls prevention, and social isolation.
To further expand the reach and impact of its network, the company recently entered into a strategic partnership with Blue Cross Blue Shield Institute to launch a nationwide program to tackle SDOH at the community level. This unique alliance allows health plans to document health improvement and cost savings through Solera's curated network of providers and payment infrastructure to address SDOH in a sustainable and scalable way.
"There is no greater vote of confidence for the impact Solera Health is making than a substantial investment from our health plan clients," said Brenda Schmidt, CEO, Solera Health. "We've proven our model's success in driving results in chronic disease prevention and look forward to expanding our relationships with our health plan partners to help their members holistically manage their health."
"HCSC Ventures supports growth in transformational companies that share our goals of fostering innovation and increasing the accessibility and affordability of care," said Sahil Choudhry, assistant vice president, corporate development and venture investments, HCSC Ventures. "Solera Health's mission of improving people's health by connecting them with a network of health care solutions is something that truly resonates with us. The company's innovative network model has already helped millions of individuals change their habits and reduce their risk of developing chronic disease."
HCSC is the country's largest customer-owned health insurer and fourth largest overall, with more than 16 million members covered by its health plans in Illinois, Montana, New Mexico, Oklahoma, and Texas. In addition to HCSC Ventures, several new strategic investors joined the round including Horizon Blue Cross Blue Shield of New Jersey, Blue Cross and Blue Shield of Alabama, Blue Cross and Blue Shield of Kansas City, BlueCross BlueShield of South Carolina, and Blue Shield of California who have a collective reach of approximately 30 million lives. Social impact investor Alliance Healthcare Foundation also participated in the round.
"At Blue Cross and Blue Shield of Kansas City, we believe that addressing the social determinants of health for our beneficiary populations will be key to our community health program moving forward," said Bret Oettmeier, president and CEO, Cobalt Ventures, the private equity subsidiary of Blue Cross and Blue Shield of Kansas City. "What Brenda and the Solera Health team are looking to accomplish in this space is unique and we are excited to support the company's efforts to better address these issues with an ultimate goal of improving care quality while lowering associated costs."
Current investors BlueCross BlueShield Venture Partners/Sandbox Advantage Fund, Adams Street Partners and SJF Ventures also participated in the most recent funding round. With the Series C investment, HCSC Ventures' Sahil Choudhry has joined the Solera board of directors.
About Solera Health
Solera Health is committed to changing lives by guiding people to better health in their communities. The company serves as an integrated benefit network that connects patients, payers and physicians with community organizations and digital therapeutics providers, simply and securely. Solera helps consolidate highly fragmented programs and services into a single marketplace allowing health plans and medical providers to increase consumer participation while lowering associated costs. By using data science to proactively identify the "best fit" program provider based on each individual's unique health goals, needs and preferences, the company has proven to have a significant impact on improved patient outcomes at a fraction of the cost of traditional medical care. For more information, visit Solera Health at www.soleranetwork.com.
About HCSC Ventures
HCSC Ventures, a wholly-owned subsidiary of Health Care Service Corporation, is a health care services venture capital firm that invests in early to growth stage businesses that are strategically important to health insurers. The firm seeks to invest in companies and entrepreneurs that have the potential to make an impact on the health care industry by improving quality of care, lowering medical and administrative costs, reducing complexity, and improving the consumer experience. For more information, visit www.hcscventures.com.
SOURCE Solera Health