Collective Health Secures $280 Million to Accelerate the Digital Transformation of Healthcare
Health technology company Collective Health today announced it secured $280 million in funding in a Series F round. The investment will be used to scale Collective Health’s seamless healthcare experience, empowering more people to live healthier lives through intuitive technology and personalized guidance. Health Care Service Corporation (HCSC), the largest customer-owned health insurer in the U.S., which operates in five states, led the round. Additional backing was provided by new and existing investors, including DFJ Growth, Founders Fund, G Squared, Maverick Ventures, NEA, PFM Health Sciences, SoftBank Vision Fund 1, Sun Life, and others.
“One of the most significant pain points in our economy and society is the lack of a powerful and flexible technology infrastructure to help people understand, navigate, and pay for healthcare. Collective Health has changed that with our platform,” said Ali Diab, Collective Health’s CEO and Co-Founder. “This latest round of funding enables us to further our vision of empowering American workers and their families to live healthier lives. By expanding the scope and reach of our platform and partner ecosystem, we can broadly deploy the infrastructure for the next generation of healthcare.”
Expanding an Intuitive, Seamless Experience
The fragmented nature of healthcare today prevents many people from getting the care they need when they need it. This can lead to poor health outcomes, as well as disparities in care. Collective Health is helping to fix this by reinventing the underlying infrastructure for the healthcare industry with a customizable digital platform that effortlessly brings together a robust network of partners. Collective Health has developed products and services to provide a seamless, intuitive member experience, help companies reduce the administrative burden of delivering health benefits, and improve health outcomes.
This funding helps advance Collective Health’s mission to heal the ailing healthcare industry. By enhancing its already powerful, flexible platform, more employers and their people will be able to easily understand, navigate and pay for healthcare. This unified employer and member experience makes navigating care intuitive, not intimidating—guiding employees toward healthier lives and companies toward healthier bottom lines.
“We at NEA firmly believe that Collective Health is building the essential backbone for the future of healthcare,” said Mohamad Makhzoumi, General Partner and Head of Global Healthcare investing at NEA. “This latest investment will help the company continue developing its technology and service infrastructure, while creating new market opportunities by expanding the reach of Collective Health’s unparalleled member experience to millions more Americans.”
“With its flexible platform, Collective Health offers a growing ecosystem of partners, including medical provider networks, pharmacy benefit managers, virtual care solutions, digital health programs, and more. We believe the company is uniquely positioned to enable the change agents of healthcare, power the future of the healthcare industry, and empower millions of Americans to live healthier lives,” said Kirthiga Reddy, Partner at SoftBank Investment Advisers. “We are delighted to continue our support of Ali and the Collective Health team as they transform the employer-driven healthcare economy.”
Empowering Healthier Lives, At Scale
With a member satisfaction rate of more than 90%, Collective Health has seen 10x member growth in the last few years. The investment today is anticipated to accelerate further adoption over the next few years with the goal of bringing Collective Health’s seamless, intuitive member experience to millions more.
As part of its recently announced strategic relationship, HCSC is bringing new and existing members access to Collective Health’s technology and personalized guidance. Beginning January 1, 2022, HCSC will offer Collective Health to self-funded Blue Cross and Blue Shield customers in Illinois and Texas, with plans to expand into all of HCSC’s markets.
“HCSC is committed to offering benefits and support that facilitate a seamless, impactful, and user-friendly healthcare experience for our members and customers,” said Maurice Smith, president and CEO, HCSC. “We look forward to working with Collective Health and its innovative digital technology platform to further complement our portfolio of solutions that meet customers’ evolving health care needs.”
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