Digital infrastructure startup Medallion raised $30 million from buyers together with UnitedHealth Group’s enterprise arm and key figures from Cityblock, Oscar Well being and Roivant Sciences, the corporate announced Wednesday.
Medallion, which gives companies that automate clinician licensing and insurance coverage community compliance duties for digital well being corporations, provides that new Sequence B cash to the $20 million it beforehand raised sinced its founding in 2019. The San Francisco-based firm is valued at $200 million, CEO Derek Lo stated.
Traders within the newest spherical embody Oscar Well being CEO Mario Schlosser, Cityblock Well being CEO Iyah Romm and Roivant Sciences founder Vivek Ramaswamy. UnitedHealth Group’s Optum Ventures, which participated within the Sequence A spherical, made a further funding through the Sequence B. Sequoia Capital is the lead investor within the newest spherical and associate Andrew Reed will be a part of Medallion’s board. Earlier buyers embody GitHub, Phase and former San Francisco 49ers quarterback Joe Montana.
“The most important [return on investment] is not velocity, it is having found out tips on how to run all these processes effectively,” Lo stated. “That permits our shoppers to extra predictably and reliably get to market sooner, and that may be tens of millions of {dollars} in ROI. As a result of if a program or a brand new market launch is delayed by even a month, that may actually be tens of millions of {dollars} of income misplaced.”
Medallion was born from a telehealth growth that continues. In the course of the first three quarters of this yr, telehealth corporations raised $6.6 billion in funding, based on information from Trendy Healthcare’s Digital Health Business and Technology.
The corporate got here into being simply in time for the COVID-19 pandemic to make digital drugs extra widespread. Over the previous yr, Medallion’s clients have quadrupled to just about 100, and embody startups similar to Firefly Well being, Carbon Well being and Ginger. The corporate’s income has quintupled, Lo stated. In 2022, Medallion goals to triple its income, he stated.
Now, Medallion is aiming to increase past digital well being to incumbent healthcare payers and suppliers by advertising itself as an information-management platform. “Each single supplier that wishes to see lined lives needs to be in-network with insurance coverage payers, and that is the overwhelming majority of clinicians in all the nation.”
Infrastructure startups targeted on streamlining the insurance coverage business have more and more gained traction in digital well being.
In October, insurer MVP Health Care invested an undisclosed sum to launch Belong Well being, “a built-for-purpose firm” that entered the market to assist regional payers provide Medicare Benefit and Particular Wants Plans.
This week, digital well being startup nirvanaHealth launched Aria Medicare, a cloud-based platform that goals to function a one-stop store for well being plans trying to get into the fast-growing and profitable privatized authorities program for seniors. Aria Medicare markets itself as “Medicare Benefit-in-a-box” and runs on Amazon’s cloud.
Final month, Firefly Health introduced it was remodeling its digital main care supplier companies to a digital-first well being plan for small- to medium-sized employers trying to sidestep conventional insurance coverage.
