Centivo, an employer-focused healthcare company, has raised $75 million in equity and debt financing, which it will use to help families access more affordable healthcare, it announced Tuesday.
The Buffalo, New York-based company serves large and small employers and functions as an alternative to traditional health insurers. Its health plan offers an in-house virtual primary care practice called Centivo Care and a member engagement and plan administration platform. It also directly contracts with accountable care organizations across 18 markets. Patients receive free primary care, no deductibles, a mobile app and a care team that includes the primary care doctor, nurse practitioners, physician assistants and other medical providers. The company supports patients in all 50 states and serves a variety of industries, such as retail, transportation and school districts.
The $75 million includes funding from new investors Cone Health Ventures and MemorialCare Innovation Fund, as well as existing investors B Capital, Cox Enterprises, F-Prime Capital, Ingleside Investors and Morgan Health. Trinity Capital and JPMorgan Chase provided debt facilities. To date, Centivo has raised $171 million in equity financing.
With the funding, Centivo is focused on accelerating its “mission of making high-quality healthcare more accessible and affordable to working families,” said Ashok Subramanian, CEO and co-founder of the company.
“This means enhancing and scaling our products and technology, incorporating enhanced mental health services and our in-house virtual primary care practice, among other improvements,” Subramanian said in an email. “We will also continue to grow our network of partnerships with health systems to achieve cost-effective care for our members.”
Americans are facing increasingly high healthcare costs. In 2023, annual premiums for employer-sponsored family health coverage were $23,968, with employees typically contributing $6,575 toward their coverage, according to KFF. The average deductible for covered workers in plans with a general annual deductible was $1,735 for single coverage. Additionally, employees at smaller firms generally pay $2,445 more for family coverage compared to those at larger firms.
Centivo argues that it can bring down these costs. In 2023, its health plans reduced member out-of-pocket costs by 71% compared to their previous plans, according to the announcement.
The funding announcement also follows Centivo’s May acquisition of Eden Health, which also serves employers and provides primary care, mental health support and care navigation. Due to the acquisition, Centivo now works with more than 160 employers.
Looking ahead, the company is focused on supporting “small and medium-sized business owners by showcasing the advantages of our self-funded health plans” while also “continuing to target large, national employers who are looking to offer their employees more innovative and affordable health plan options,” Subramanian said.
Picture: Feodora Chiosea, Getty Images
