StartUp Health Company Aver Raises $58M to Revolutionize Value-Based Healthcare & Rebrands as…
StartUp Health Company Aver Raises $58M to Revolutionize Value-Based Healthcare and Rebrands as Enlace Health
Under the leadership of CEO Bill Nordmark, Enlace Health (formerly known as Aver, which StartUp Health initially backed in 2013) is dramatically expanding its mission of transitioning healthcare organizations to outcomes-based business models.
Just 18 months ago we interviewed Bill Nordmark about the $27M Series C that allowed the Atlanta, GA-based startup to take their team of 40 and scale nationally. This week the company announced a $58M raise, led by Cox Enterprises, that will enable them to grow faster and further. According to a company statement, the aim of the raise is to “develop the only end-to-end, flexible solution that enables all healthcare participants to truly operate within a Triple-Aim-focused world.” Enlace will use the capital to accelerate growth and “begin the seismic shift needed to improve healthcare’s economic and delivery models.”
“This new investment is a great moment for our company and signals the aggressive expansion of our mission: ‘the evolution of healthcare from its chaotic environment to an orderly infrastructure that enables true, quality-driven healthcare to be paid for and consumed economically and efficiently for all participants,’” said Nordmark.
What does all of this mean? When we sat down with Nordmark last year to better understand the company’s platform, mission and trajectory, he told a story about a $500 bag of peanuts. It went like this:
Imagine if you bought an airplane ticket to visit some family members, says Nordmark, but you didn’t know the price of the ticket when you took off. When you landed, you started to get bills from every single person that you interacted with — $1000 for the baggage handler, $2000 for the ticket agent, $500 for the peanuts. Not to mention the mysterious $10,000 ‘airport usage’ bill.
Thankfully, this isn’t how airlines operate. The price of an airline ticket bundles together all of the services required for the whole experience of getting from point A to point B. It is, however, precisely how healthcare handles billing. Surprise bills, mysterious facility fees and fluctuating prices have become the norm. In fact, says Nordmark, healthcare seems to be just about the only industry that hasn’t figured out how to bundle payments efficiently so that customers can pay for outcomes rather than paying for a confusing list of fees and line items. With Enlace Health, Nordmark is working to change all that.
Nordmark understands the push and pull of healthcare incentives. He’s seen firsthand the incredible administrative burden of bundling payments together. Even health systems that want value-based care often just don’t have the tech infrastructure to pull it together. So, he built a company to help them do it. Aver (now Enlace Health) was designed to come alongside payers and providers — insurance companies and hospitals alike — that are shifting from fee-for-service business models to value-based care and simplify the process. With their recent raise, they’ll be able to take an even stronger position in that process.
“We’ve been a proud investor and supporter in Aver, now Enlace Health, since 2013 and it has been inspiring to support their vision and evolving capabilities year by year,” says Steven Krein, CEO and managing partner at StartUp Health. “With this most recent raise, Bill and his team are poised for true health moonshot impact as they use new business models to lower cost and improve healthcare quality.”
Want to know more about how Enlace Health does that important work of transitioning business models to meet the “Triple Aim” of health? Read our deep dive on the blog or watch our interview on StartUp Health TV.
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StartUp Health Company Aver Raises $58M to Revolutionize Value-Based Healthcare & Rebrands as… was originally published in StartUp Health on Medium, where people are continuing the conversation by highlighting and responding to this story.