Clarify Health clinches $150M series D, boosting valuation to $1.4B

Enterprise analytics company Clarify Health banked $150 million in fresh funding to bulk up its clinical informatics capabilities and expand its value-based payments technology.

SoftBank Vision Fund 2 led the series D round and was joined by funds and accounts managed by BlackRock and Memorial Hermann Health System along with existing investors Insight Partners, Spark Capital, KKR, Aspenwood Ventures, Rivas Capital and Sigmas Group.

Launched in 2015, Clarify Health works with providers, health plans and life science companies, and its technology unites longitudinal data from more than 300 million patients drawn from government and commercial claims, electronic health records and prescriptions.

The latest capital infusion comes a year after the company raised $115 million in series C funding and brings the company's total raise to over $350 million. 

Bloomberg reported that the funding round boosted Clarify Health's valuation to $1.4 billion.

Todd Gottula, co-founder and president of Clarify Health, said he and co-founder Jean Drouin, M.D., launched the company seven years ago to build healthcare’s system of intelligence and to help healthcare organizations and patients benefit from the "big data efficiencies of the banking and consumer industries."

Clarify Health had a "breakout year" in 2021 with over 100% revenue growth and is now serving 75 of healthcare’s largest organizations, executives said. 

The company maps more than 300 million annual patient journeys and generates 18 billion artificial-intelligence-powered predictions to help payers, providers and life sciences companies to deliver better care, therapies, and outcomes, according to the company.

Clarify Health's cloud analytics platform fulfills an "unmet need" in the industry, Gottula said, and can help organizations leapfrog from point-solution and manual analytics to self-service, rapid generation of enterprise insights.

"We've brought together an incredible team to build the technology platform that's finally able to surface the truly actionable insights in the workflows for the diverse community of payer, provider and life sciences organizations that have been thirsty for years, if not decades, for the type of information that has sat latent in the available data assets that we're now making available," Gottula said.

The company says it can generate insights 30 times faster than traditional methods with its patented automation processes for machine learning model generation and performance benchmarking. 

Clarify Health is focused on the value-based care market and built a platform that connects clinical performance to financial incentives to build a "single source of truth" and enable the transaction of value-based payments. 

The shift from fee-for-service models to value-based care and payment models has been steadily increasing but at a slow pace. But value-based care models picked up steam during the COVID-19 pandemic as mounting evidence demonstrated their potential to lower costs and improve outcomes.

"There's finally a move to value-based care being driven by really the commercial payers. You know, for many years, we thought that Medicare was going to be the organization that was going to lead the adoption of value-based care starting with payment bundles," Gottula said. "Over the last few years, we've really seen the likes of large commercial payers looking for ways to enable a system that rewards clinicians for higher quality work and better outcomes."

The company also has grown rapidly through acquisitions that strategically expand its value-based payments platform. In August, Clarify Health picked up software startup Apervita’s value optimization business. That deal bolstered Clarify’s integrated analytics platform for end-to-end value-based contract design, payments reconciliation, clinical performance assessment and reporting. 

The company recently notched another value-based care acquisition, grabbing Embedded Healthcare and its behavioral science tools, providing data and incentives to clinicians to simplify value-based contracting and reduce the cost of care for patients.

Those acquisitions were "strategic accelerants" for Clarify Health's road map, Gottula said.

"With the acquisition of the value optimization capabilities from Apervita, that allows us to bring the digitization of value-based care contracts earlier in our lifecycle. We are able to serve the needs of the market faster. The recent acquisition of Embedded Healthcare takes that one step further to help drive physician behavior change," he said.

Company executives say Clarify Health's technology applies “moneyball-style” analytical methods that predict outcomes in baseball to healthcare, objectively assessing the performance of hospitals and clinicians and precisely identifying the right interventions and therapies for patients. 

"When assessing clinician performance, we can identify where there are significant value creation opportunities or improvement opportunities in the existing system. As a provider group, you want to understand where there are opportunities to most significantly move the outcome needle, both to the benefit of your patients, but also to succeed in value-based care arrangements," he noted.

The demand for data and insight to drive better care and payment decisions continues to expand rapidly, said Matt Singer, managing director at BlackRock, and Clarify’s platform has the opportunity to make a strategic impact in addressing these challenges.