New Medicare Advantage plan launches with $300M in funding
Devoted Health, a new Medicare Advantage plan, has officially launched after securing $300 million in a Series B funding round, the company announced Tuesday. The company was founded in March 2017.
The funding announcement comes just as Medicare enrollment is set to begin at the start of 2019. Devoted Health is beginning to enroll members in eight counties in south and central Florida. MA plans currently cover roughly one-third of all Medicare beneficiaries.
The funding round was led by Andreessen Horowitz, a Silicon Valley venture firm that has invested in several healthcare startups over the last several years, and included Premji Invest and Uprising, in addition to existing investors.
“We are on a mission to deliver to our members the kind of care that we all would want for our own family,” Ed Park, CEO and co-founder of Devoted Health, said in a statement. “To do that, we have started from a clean sheet of paper, building a ‘payvidor’––a combination of a ‘payor’ and ‘provider’ of health care services––that in addition to partnering with the most trusted doctors and hospitals, will be a provider of care services in the home designed to help keep our members healthy.”
With its latest round of funding, Devoted Health intends to invest in building technology and operations to support delivery of coordinated care for members, according to Park.
Devoted Health received licenses and approvals from the State of Florida and CMS to begin enrolling members to its MA plan in Florida as of Oct. 15, 2018. It will operate in Broward, Hillsborough, Miami-Dade, Osceola, Palm Beach, Pinellas, Polk and Seminole counties in the state. Devoted is partnering with healthcare providers to deliver “the highest-quality care possible,” the company stated.
The hybrid model aims to ensure members get the right care at the right place, with better outcomes and lower costs.
“In various parts of the country, there are local examples of organizations dramatically improving health care outcomes and bringing down costs,” Bill Frist, MD, a member of Devoted’s board and an investor in the company, said in a statement. “What makes Devoted so exciting is that they have the team, operating model, technology, and capital to scale this kind of performance nationwide."
The company had previously raised $7.4 million in founding and seed investment rounds during the second quarter of 2017 from Venrock, Todd Park and Ed Park. In October 2017, Devoted Health raised $61.95 million from investors that included Oak HC/FC, Venrock, F-Prime Capital Partners, Maverick Ventures and Obvious Ventures.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."