Buffalo-based health plan administrator Centivo said it acquired the virtual primary care startup Eden Health on Monday in a deal that will expand its clinical offerings and employee coverage.
The acquisition integrates Eden Health’s virtual and in-person clinical services into Centivo’s network. Eden Health, headquartered in the Financial District, focuses on providing accessible primary care to U.S. employees – a mission that aligns with Centivo’s goals to improve preventive care and drive down medical costs, said Ashok Subramanian, CEO of Centivo.
“Primary care access and convenience is a problem everywhere,” Subramanian said. The acquisition will help employers offer workers on-demand primary care services, as well as mental health and urgent care services as well as a few workplace pop-up clinics.
Eden Health, founded in 2015, sells its virtual care platform to companies as an employee benefit and operates clinics in New York and other major cities nationwide. The startup, like Centivo, offers a value-based care model, meaning that it charges employers based not on how often their workers use medical care but rather on the estimated annual costs of their health needs.
The value-based model used by Centivo and Eden allows companies to understand how much they will pay for employees’ medical care up front, and makes it so that employees have no out-of-pocket costs for primary care, Subramanian said. He added that the approach has driven down employer health costs by nearly 30%.
Through the deal, Centivo will expand its customer base to 160 employers, including Fortune 100 companies and small businesses. It will also expand Centivo’s coverage population to approximately 2 million individuals nationwide, the company said. Prior to the acquisition the company offered coverage in 13 states.
Centivo declined to disclose the financial terms of the acquisition. Eden Health has raised $143 million from venture capital firms since it was founded in 2015, according to data from PitchBook.
Centivo’s acquisition of Eden Health comes as the company has attracted interest from investors to expand its primary care offerings. The firm’s most recent Series B round closed at $81 million in July 2022, and was led by investors B Capital Group and Maverick Ventures, PitchBook data shows. Morgan Health, the health care venture arm of J.P. Morgan Chase has also invested in the company.
Centivo launched in 2017 and has raised $150 million to date. It partners with local health systems including Mount Sinai and Catholic Health to build its physician network.
Amanda D'Ambrosio , 2024-05-20 20:55:46
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