Fabric, formerly known as Florence, continues its acquisition spree, picking up TeamHealth's 50-state virtual care service.
The deal marks Fabric's fourth acquisition in 18 months and adds TeamHealth's virtual care network to expand access and services across the country and 36 million additional lives, according to the company in a press release. Fabric said the acquisition enhances the company's accessible virtual healthcare services to payers, employers and health systems. The deal also expands the company's medical group, executives said.
Financial details of the deal were not disclosed.
The care enablement startup says it now serves more than 75 health systems, 30,000 employers and 100 million covered lives. Healthcare customers include Luminis Health, OSF HealthCare, MUSC Health, Highmark and Intermountain Health.
As the result of several acquisitions, including this latest one, the company offers flexible virtual staffing models through its 50-state clinical network that provides virtual urgent care, primary care and behavioral health.
TeamHealth VirtualCare was part of TeamHealth, a physician practice group with more than 14,000 clinicians.
"This strategic addition expands our reach across payers, employers, and provider organizations," said Aniq Rahman, CEO and founder of Fabric, in a statement. "In conjunction with the acquisition of TeamHealth's virtual care service line, we are now expanding our medical group with additional highly skilled physicians and advanced practice providers with multi-specialty experience, including cardiology, sports medicine, OB/GYN, family medicine, and emergency medicine. Our versatile technology suite and expanded provider network advance our mission to deliver boundless care across client initiatives and clinical business lines."
In February, Fabric pocketed $60 million in a series A round backed by General Catalyst. Thrive Capital, GV (Google Ventures), Salesforce Ventures, Vast Ventures, Box Group and Atento Capital also backed the round. The company has raised $80 million to date.
The company and TeamHealth will collaborate on projects leveraging Fabric's technology to drive efficiency and patient access, the organizations said.
Health systems previously served by TeamHealth VirtualCare will transition to Fabric.
Fabric officially launched out of stealth in March 2023 and has rapidly built out its tech that automates clinical and administrative work in healthcare. The company has bought other tech and virtual care companies to broaden its capabilities. In April 2023, it picked up Zipnosis from Bright Health in an all-cash deal to expand its asynchronous virtual care capabilities, and, in January, the company bought conversational AI assistant Gyant, another all-cash deal, to expand its "digital front door" for patients.
Three months ago, in June, the company acquired Walmart's MeMD telehealth business as the retail giant announced plans to shutter its primary care clinics.
That deal significantly expanded Fabric's reach in the employer market as MeMD provides virtual care services to 30,000 employers and 5 million employees, according to the companies. MeMD's customer base is comprised of large employers, brokers, third-party administrators and distributors.
MeMD, founded in 2010 and acquired by Walmart in 2021, provides on-demand medical and behavioral health services to millions of members nationwide, according to the companies in a press release. The retailer rebranded the business to Walmart Health Virtual Care after the acquisition three years ago.
Fabric is growing rapidly, reporting triple-digit annual sales growth, executives said back in June.
The company provides a telemedicine platform for health systems and has built a suite of products, from patient intake to self-scheduling to provider documentation tools, to help streamline workflows for in-person and virtual patient visits using conversational AI. The technology improves both the provider and patient experience, according to executives, while also improving operational efficiency.
Fabric says its technology reduces provider work time to just 89 seconds in virtual settings, decreases call center volume by up to 30% and fast-tracks ER visits by reducing length of stay. Payers, employers and health systems will also gain access to Fabric's comprehensive 50-state network, offering efficient, cost-effective virtual behavioral and urgent care solutions.
Fabric's care enablement system was designed to improve patient access while driving clinical and operational efficiency from symptom onset through virtual and in-person treatment and post-visit engagement. Rahman said the company's technology addresses clinical capacity problems with its patient care and management software that focuses on three main areas—engagement, in-person care and virtual care.
The care enablement solution uses AI-powered clinical intelligence and automation to triage and route patients to the most appropriate point of care based on time of day, availability, distance and disposition while streamlining treatment across virtual and in-person workflows.
"We are excited to grow our long-term partnership with Fabric," said Jody Crane, M.D., chief medical officer for TeamHealth, in a statement. "Combining Fabric's technology with our more than 40-year history as the nation's leading physician practice will allow us to advance exceptional innovations in patient care and clinical outcomes."