Healthcare firm Centivo on Tuesday said it has secured $75 million in equity and debt financing, backed by Cone Health Ventures and the largest US bank JPMorgan Chase's division Morgan Health, reports Reuters.
The company did not disclose the valuation at which the latest capital was raised.
Centivo offers a primary care-centered health plan as an alternative to traditional US insurance carriers, one of the world's most expensive healthcare systems. Despite having insurance, medical services can be inaccessible to many, especially those in the low-to-middle income bracket, due to high deductibles and out-of-pocket costs.
"Our biggest competitors are the major insurance companies," Centivo CEO Ashok Subramanian told Reuters. "We've successfully reduced employee out-of-pocket costs by nearly $1,200 per year."
Out-of-pocket costs refer to expenses that individuals incur for healthcare services, even if they have insurance.
The company said it cut members' out-of-pocket costs by 71 per cent in 2023, compared with the plans it replaced. The shift also typically resulted in saving employers 15 per cent or more.
The company intends to use the new capital to enhance and scale its product technology and strike new partnerships.
"We will continue to grow our network of strategic partnerships with leading health systems to achieve integrated, coordinated, and cost-transparent care for our members," Centivo CEO Ashok Subramanian told Reuters.
JPMorgan unit backs Centivo's $75 million equity and debt raise
FE Team | Published: September 24, 2024 23:55:28
JPMorgan unit backs Centivo's $75 million equity and debt raise
Share if you like