Everside Health nabs $164M to scale up direct primary care, target potential M&A deals

As primary care continues to be a hot spot for private equity, pharmacy chains and health insurers, Everside Health nabbed $164 million in growth equity funding to accelerate its growth and support potential M&A opportunities.

Everside Health offers primary care, including mental and occupational health, virtually and on-site or near-site to employers. The company operates more than 375 health centers in 34 states and has 400 clients with a reach of 600,000 patients. 

Everside was created from the merger of Paladina Health, Activate Healthcare and Healthstat and changed its name in 2020.

Existing investors NEA, Oak HC/FT and Alta Partners along with new investors, including Endeavor Catalyst, joined the financing round.

The company, founded in 2010, will use the funding to enhance its technology stack, including new functionality and services that will empower Everside’s providers to deliver predictive patient care that treats the whole person and not just their symptoms.

“Limited access to quality primary care in the U.S. has compounded chronic conditions, exacerbated mental health problems and increased healthcare costs,” Chris Miller, Everside Health CEO, said in a press release. 

The investment will enable Everside Health to embed additional mental health professionals into its health centers as well as advance its technology capabilities to drive improved clinical outcomes, Miller said.

Everside will expand its services and specialty coverage with initiatives targeting the broad set of problems Americans, employers and union organizations face in healthcare access, cost and outcomes. 

Everside Health's business model is designed with a value-based care approach to emphasize health outcomes over patient volume, executives said. The company helps labor unions, school districts, manufacturers and other workforces save an average of 17% on claims costs by Year 3 and 31% by Year 5 based on a retrospective claims analysis conducted by Everside Health.

“It’s clear that the U.S. is in the midst of a healthcare crisis, with rising costs, lack of access to care, and mental health issues becoming more severe across the country,” said Mohamad Makhzoumi, managing general partner, healthcare, at NEA and member of Everside Health’s board of directors, in the press release.

“While a myriad of organizations are trying to make healthcare more accessible and affordable, Everside’s model has already proven to drive better health outcomes and deliver cost savings for patients and providers alike. We look forward to supporting their continued growth and success," Makhzoumi said.

In May, the company launched a new prescription solution service for customers. The new program, called TotalRx, aims to broaden affordable access to prescription medications. It will offer Everside clients a formulary of about 2,000 generics, brand and specialty drugs. The program touts flexible distribution channels: on-site at an Everside Health center, home delivery or select retail pharmacies.