The co-founders of athenahealth have closed a new round of funding for their upstart insurance company that will offer Medicare Advantage plans exclusively beginning in 2019, with support from an executive team that features some of the biggest names in data and health IT.
Devoted Health, co-founded by Todd and Ed Park, the brothers that started the EHR developer athenahealth, just received a large $62 million funding boost from 23 investors, according to financial documents filed with the SEC. Devoted Health’s website says the startup’s mission is to “build a healthcare solution good enough for Mom” by using personal guides, partnering with providers and “utilizing world-class technology to enable a simplified experience.”
The startup's leadership team includes renowned data scientists and technology executives. Todd Park, who previously served as the U.S. Chief Technology Officer, is the company’s executive chairman. The executive team also includes DJ Patil, the former U.S. Chief Data Scientist, Marina Martin, the former chief technology officer at the Department of Veterans Affairs, and Jeremy Delinksy, the former chief product officer and chief technology officer at athenahealth.
Former Secretary of HHS Kathleen Sebelius has signed on as a board member.
Devoted Health is not the only startup to target Medicare Advantage plans. Clover, which also pairs health technology with insurance plans, reached unicorn status earlier this year after a $130 million investment round from Greenoaks Capital and GV, the venture capital arm of Alphabet.
But Clover has stumbled along the way. In June the company was fined by CMS for “misleading” marketing tactics and has reported significant year over year losses since 2015.