Waymark, a Medicaid-focused provider enablement company, has secured $42 million in fresh funding that it plans to use to continue scaling its offering.
Lux Capital, an existing investor, led the round, while CVS Health Ventures, CVS Health's venture capital arm, joins as a new backer. Other previous investors New Enterprise Associates and Andreessen Horowitz also contributed.
Waymark said in a press release that the backing includes $22 million in equity capital and a $20 million credit line, which brings the company's total funding to date to $87 million.
“We created Waymark because the evidence of what works to improve Medicaid outcomes exists, but the operational capacity, technology and funding is insufficient to scale to the level of need that exists in communities across the country,” said Rajaie Batniji, M.D., co-founder and CEO of Waymark, in the announcement. “This new financing will allow us to continue hiring and training a new community health workforce, expand PCP capacity, and ultimately deliver on our charter to improve access and quality of care for people receiving Medicaid.”
Waymark is a public benefit corporation that deploys technology to assist providers in managing care for Medicaid beneficiaries and other underserved groups. The company said it builds and designs its technology with input from the communities it's aiming to reach.
It also enters into risk-based contracts with Medicaid managed care organizations to assist community health and primary care providers in transitioning to value-based care.
The company currently supports about 50,000 Medicaid enrollees in Washington state and Virginia.
Vijay Patel, managing partner and co-founder of CVS Health Ventures, said Waymark fits within the firms portfolio of companies "that are at the forefront of transforming care delivery."
"Waymark’s use of proprietary data science technologies to improve access and quality of care is doing exactly that,” Patel said. “We expect this investment will provide Medicaid members expanded access to coordinated and holistic health care.”