Tech-enabled primary care group Crossover Health hauled in $168 million in new funding to expand its platform to self-insured employers and payers across the U.S.
The oversubscribed series D financing round was led by Deerfield Management Company. Additional new investors include Perceptive Advisors, OrbiMed Advisors, Foresite Capital, Avidity Partners, SharesPost100 Fund, Irving Investors and PFM Health Sciences.
The San Clemente, California-based startup recently made headlines for expanding its partnership with Amazon to open "neighborhood health centers" in Detroit and two California metro areas. The employee health centers, which Amazon opens near its fulfillment centers and operations facilities, have previously launched in five major regions, including Dallas-Fort Worth, Phoenix and Louisville, to serve Amazon employees and their families.
The company has raised $281 million to date, according to Crunchbase.
The startup will use the new funding to introduce its new commercial advantage plans for payers, Scott Shreeve, M.D., founder and CEO of Crossover Health, told Fierce Healthcare.
"We will be using the fresh capital to continue to expand on our proprietary member engagement technology, further develop our data analytics infrastructure and health outcomes reporting, and build out additional confirmation centers for our growing in-person and online hybrid primary health service for employers," Shreeve said.
Crossover was founded in 2010 as a solution for self-funded employers to help curb healthcare costs by ensuring their workforces received well-coordinated care aimed at improving outcomes and reducing costs. It got a major boost early on when it partnered to offer employee clinics for Apple. The company has built a roster that includes companies Comcast, Visa and LinkedIn.
The startup currently services over 400,000 eligible employees and dependents throughout the country. Crossover’s software platform, called Connected System of Health, creates a national network that delivers online care in all 50 states as well as in-person care in 48 health centers in 11 states. These health centers are located either on employer campuses, near employer campuses or in the neighborhoods where eligible members and their families live.
"Today's financing signifies confidence in our vision and ability to address the evolving healthcare needs of self-insured employers and traditional payers who are looking for more care delivery accountability that achieves lower cost, higher quality, and a consistently exceptional experience for their employees and members," Shreeve said in a statement.
"We have always been driven by a clear and compelling vision for how healthcare should be—comprehensive, simple, and above all, engaging. We achieve this with a value-based approach that includes team-based primary care, physical medicine, mental health, and care navigation as part of our in-person and online primary health service," Shreeve said.
Adam Grossman, partner at Deerfield Management, said Crossover Health has created a comprehensive and highly coordinated connected system of health for employers.
"Our interest in backing health technology, care services, and innovative reimbursement models that have helped transform the industry aligns with the commitment of the Crossover team," Grossman said.
Crossover Health provides comprehensive and coordinated healthcare to self-insured employers and health plans. Dubbing itself a "next-generation primary health model," the company offers services inclusive of primary care, physical medicine, mental health, health coaching and care navigation to control healthcare costs while enhancing both quality and experience, the company said.
The company's primary health technology platform promotes online interaction with its members, provides members access to their health data and encourages an everyday approach to managing member health and well-being.
In February 2019, the company acquired Sherpaa, a virtual primary care company that also had care navigation and care management services.
Ongoing investment in tech-enabled primary care models like Crossover Health speaks to a larger trend of virtual-first/telehealth, primary care companies and the need of self-insured employers and traditional payers looking for more care delivery accountability that achieves lower cost and higher quality for their employees and members, according to company executives.
Crossover Health is among a crop of healthcare startups trying to shake up the $260 billion primary care market. Other companies in the space include Forward, One Medical, Iora Health, Oak Street, Privia Health, VillageMD and Advantia Health.
Goldman Sachs & Co. LLC acted as the exclusive placement agent for the financing, and Latham & Watkins LLP served as legal counsel to Crossover Health.