Vori Health picked up $53 million in a series B funding round to build out its physician-led solution for musculoskeletal care.
The startup plans to use the funding to expand its value-based care initiatives, including evolving toward increasingly sophisticated economic models with two-sided population health risk, according to the company in a press release. Vori Health also plans to invest in advanced data analytics for more precise targeting of high-risk members, and enhance its AI-powered technology platform and clinical programs.
The series B round was led by NEA (New Enterprise Associates) and was backed by AlleyCorp, Intermountain Health's Intermountain Ventures, Echo Health Ventures and Max Ventures. The company said it was a "heavily" oversubscribed round.
Vori Health picked up a $45 million series A funding round in May 2021.
The company reports strong clinical outcomes and significant cost savings for patients and health plan and employer partners in the past 18 months. Revenue has grown 800% in that timeframe, according to the company.
Executives highlighted key outcomes: 91.6% of patients reporting clinically significant pain improvement, a 78%-90% reduction in elective orthopedic surgeries, a 42% decrease in opioid utilization and up to a 68% reduction in depression and anxiety among patients.
Vori Health was founded by surgeons from Yale and Mayo Clinic and built a physician-led practice delivering integrated virtual and in-person care. The company combines board-certified physicians, physical therapists, registered dietitians and health coaches who work collaboratively to eliminate unnecessary care while aiming for better clinical outcomes and validated cost savings for employers and health plans, according to the company.
"This investment marks a pivotal moment in our journey to deliver truly value-based musculoskeletal care at scale," Ryan Grant, M.D., co-founder and CEO of Vori Health said in a statement.
"By integrating board-certified specialty physicians, cohesive care teams, and cutting-edge technology, we're achieving outstanding outcomes nationwide. The swift adoption of our platform by Fortune 200 companies and national health plans clearly indicates that the market is primed for our comprehensive solutions," Grant said.
Vori Health's integrated approach strongly appeals to health plan and employer clients, executives said.
"With musculoskeletal conditions representing a large part of our healthcare spend, partnering with an innovative leader like Vori Health has been one of our best strategic decisions," said the Vice President of Medical Affairs at a large health plan partner, as quoted in the press release. "Their physician-led approach delivers exceptional care in a convenient setting that our members value while generating substantial cost savings for our organization—it's the win-win solution we've been searching for."
Virtual musculoskeletal care and digital physical therapy has become a highly competitive market. Other companies in the space include Hinge Health, DarioHealth, Kaia Health, Limber Health, Omada Health, RecoveryOne and Sword Health.
Just this week, Hinge Health filed to go public and reported strong revenue growth. Hinge currently works with more than 2,250 enterprise customers and has client agreements with nearly half of Fortune 100 companies, it said.