Merck Global Health Innovation Fund, Kleiner Perkins, Leaps by Bayer, GreatPoint Ventures, and Threshold Ventures Join General Catalyst, 7wireVentures, Alta Partners, and Jove Equity Partners to Fuel Rapid Expansion
Transcarent, a new and different consumer-directed health and care experience for employees of self-insured employers and their families, today announced a $58 million Series B investment led by General Catalyst and 7wireVentures, with participation from Merck Global Health Innovation Fund, Kleiner Perkins, Leaps by Bayer, GreatPoint Ventures, and Threshold Ventures along with existing investors Alta Partners and Jove Equity Partners. This round brings Transcarent’s total funding to $98 million and will allow the company to respond to the demand for rapid expansion of its innovative risk-based offering for self-insured employers.
“Rising costs in the self-insured employer space, along with the acceleration of broad adoption of virtual care due to the pandemic, have underscored the need for new and different health benefit models,” said Bill Taranto, President and General Partner of the Merck Global Health Innovation Fund. “We’re inspired by Transcarent’s vision to empower employees and their families in making informed choices when seeking cost-effective, high-value care.”
Officially launched in March 2021, Transcarent is a health and care experience company focused on putting people back in charge of their care by providing unbiased information, trusted guidance, and easy access to high-value care. The company delivers a personalized, 24/7 care experience, addressing virtually all of the most common and most challenging issues a person faces by connecting them with a personal Health Guide or physician, offering expert second opinions, medication review and management, virtual physical therapy, and comprehensive appropriate site-of-care surgery solutions. At the helm of the company is Livongo Founder, and former Executive Chairman, and CEO Glen Tullman.
“We believe the next 18 months will define the next five years in healthcare, and much of that innovation centers around two words: experience and alignment,” said Glen Tullman, CEO of Transcarent. “There’s an extraordinary amount of friction in today’s healthcare journey which makes an individual’s experience more confusing, complex, and costly than ever. Siloed point solutions and navigators don’t improve people’s experience and don’t address the lack of alignment with the true payers in healthcare – employers and the people who work for them. Transcarent will remove the unnecessary barriers and provide employees with the right resources to make informed decisions for themselves and their families, while realizing better value for their employers.”
To date, the company’s solutions have delivered some impressive results:
- 21% of patients have received a change/correction in diagnosis
- 40% of patients avoided unnecessary surgeries or procedures
- Members seeking care are connected with a physician in 60 seconds, on average
- Transcarent’s surgery solutions provide an average overall net savings of 25-50% per procedure
In October 2020, Transcarent closed its $40 million Series A funding round and the acquisition of BridgeHealth, which is now a core component of the full range of services that Transcarent provides. BridgeHealth had established itself as the leader in surgical Center of Excellence and Appropriate Site of Care surgical solutions for some of the nation’s largest and most innovative self-insured employers. Currently serving over 1 million Members with more than 160 Centers of Excellence and Ambulatory Surgery Centers, the surgery solutions it provides have documented improvements in quality of care, resulting in 80% lower complications and a Net Promoter Score of 90. A recent national study confirmed that BridgeHealth’s value-based care approach improves quality of care and saved plan sponsors an average of between 25-50% per surgical procedure.