Eden Health received a fresh injection of venture capital Thursday that the concierge health care provider said will enable it to expand its care integration model into new areas.
“I watched my sister go through health problems, end up in the ER and almost pass away,” Matt McCambridge, Eden Health co-founder and CEO, told Crunchbase News. “She was seeing so many specialists and finally found the right primary care provider who found good specialists and helped save her life.”
Typically, patients are the ones searching through their insurance networks to find providers. Eden Health, offered through employers and commercial real estate building landlords providing health coverage to tenants, combines telehealth, in-person primary care, behavioral health and insurance navigation with what McCambridge called a “‘medical home” method, centered around creating trusted relationships between the patient and a dedicated care team.
More than 160 million people get their insurance from their employer, he said. Employers care about quality, employee experience and cost, which also aligns with what the patient is looking for, McCambridge added.
Insight Partners led a $60 million Series C round of funding for Eden Health, headquartered in New York. The investor was joined by Flare Capital Partners, PJC, Max Ventures, Aspect Ventures, Company Ventures, and Flex Capital.
The new funds give Eden Health a total of $100 million in funding since the company was started in 2016, McCambridge said. It is also the second round of funding for the company within six months: it announced a $25 million Series B, led by Flare, last August.
Investors in digital health startups poured record investment dollars into the space in 2020: $14.2 billion globally and $9.2 billion domestically, according to Crunchbase data.
Richard Wells, managing director at Insight Partners, said in a statement that McCambridge and his co-founder, Scott Sansovich, were some of the early identifiers of integration of primary care, mental health care and insurance navigation as a way to improve quality of care and patient experience.
“Restoring trust in health care will be catalyzed in part by transforming the patient experience from one that is transactional to one that is rooted in relationship and proactive care,” Wells added.
The new capital will be used on technology and product development, as well as to expand Eden Health’s brick-and-mortar medical office footprint in several new major U.S. metropolitan areas, including Chicago, Boston, Washington, D.C., Houston and Los Angeles, McCambridge said.
Since launching its product in 2017, the company is working with more than 100 employers and has more than 40,000 covered members, he said. In 2020, recurring revenue grew by 800 percent year-over-year, in part due to the company’s COVID-19 response.
“We did over 30,000 screeners for employers to help essential employees stay at work and prevent over 1,500 superspreader events in the workplace,” McCambridge said. “COVID highlighted the value of having a health care system that works for companies. We have the expertise, technology and clinicians to make that possible.”
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