Less than a year after its launch, Cohere Health, maker of a care-collaboration platform, announced a $36 million Series B funding round.
Polaris Partners led this latest funding round with participation from new investors Longitude Capital and Deerfield Management. Existing investors Flare Capital Partners and Define Ventures also contributed.
WHAT IT DOES
Cohere Health’s platform looks to put providers and health plans on the same page by creating an efficient, transparent system that aims to build low-cost, evidence-based care plans.
The company’s CohereNext platform streamlines the authorization process for care plans and provides analytics to identify best-performing physicians and care paths. Humana Inc. and the American Academy of Orthopaedic Surgeons have both inked deals with the startup.
The AAOS plans to integrate clinical recommendations into CareNEXT’s care pathway guidelines. Meanwhile Humana will use the platform to streamline prior authorizations in musculoskeletal treatment in 12 states.
WHAT IT’S FOR
The new funds are intended for Cohere’s digital health plan solutions which offer a new approach to prior authorization systems. The aim is to create more collaborative care by automating provider and payer preauthorization.
“Our clients have recognized an immediate time to value from our digital solutions, compared to processes based on outdated technology that previously took much longer and caused aggravation for providers and office staff—not to mention patients and health plans," Siva Namasivayam, CEO of Cohere Health, said in a statement.
"Looking ahead, potential CMS regulations and the trend towards value-based care are making care management system interoperability more imperative. Our solutions are well-positioned to help health plans meet these challenges as well."
Of late, improving communication between payers and providers has occupied the efforts of industry players.
Last year, Epic and Blue Cross Blue Shield Association's Health Care Service Corporation announced a project to create a platform that better connects payers and providers. The Payer Platform will enable two-way communication between HCSC health plans and providers who use Epic.
Launched in 2018, PriorAuthNow also aims to streamline prior authorization. Its system simplifies communication between providers and insurance carriers by offering a one-stop-shop to replace phone calls, faxes and payer portals.