Collective Health, an employee benefits platform that uses predictive analytics to match employees with programs, has raised $110 million in funding to scale operations. Participants in the financing round include existing investors NEA, Founders Fund, GV, and Maverick Ventures, as well as new investors Sun Life Financial and Mubadala Ventures.
Word of the new funding comes amidst other headlines featuring Collective Health, which include the unveiling of an updated software platform for its services and an integration with Sun Life Financial’s services.
“Employers not only pay for the vast majority of private healthcare in America, they are also running healthcare plans that pioneer the most innovative approaches to delivering care, creating a massive market opportunity for a new generation of healthcare companies,” Collective Health CEO and cofounder Ali Diab said in a statement. “However, employers’ ability to drive positive change in healthcare is being hampered by antiquated technology that keeps all pertinent healthcare and financial information locked in disparate, legacy systems. The Collective Health Platform eliminates this fragmentation, removing inefficiencies, lowering costs, and improving the experience for American employers and workers.”
The company said in a statement that the new funding will be used to support its growing number of customers, which has doubled to 30 enterprise clients and 120,000 members across the US. Along with expanding its presence in Georgia, New York, and Southern California, the company said that it is opening a new office in Chicago.
Collective Health said in a statement that its newly revealed platform can compile employee health data regardless of whether their info is stored in fax machines, CDs, and other format silos that frequently complicate data collection. The member suite includes a mobile app that features proactive messaging and other support, while the employer side offers live dashboards, performance reporting, and other financial controls.
“American employers, through the benefits they provide, drive the biggest portion of the healthcare system, and are demanding more sophisticated tools to improve the performance of their plans and the health of their employees,” Dan Fishbein, president of Sun Life Financial US, said in a statement. “We share a deep client focus with Collective Health, and are thrilled to work more closely with their team to innovate and deliver smarter, more flexible products."
Alongside their investment in Collective Health, Sun Life Financial announced in another release that its stop-loss offering into Collective’s new platform. This integration will protect self-funded employers from high-dollar claims, according to the statement, with the two companies looking into other potential services for their customers that involve data analytics and risk modeling.
"Employers are looking for new benefits solutions built with the latest technology that bend the cost curve,” Dr. Dan Fishbein, president of Sun Life FInancial US, said in a statement. “By combining our efforts, Collective Health and Sun Life can make a bigger, accelerated impact.”
Following the investment, Fishbein will also be joining Collective Health’s board of directors as an advisor, according to a representative from Collective Health.Air Max 95 - Fresh Mint