OMERS Growth Equity Leads Round, Joins Board to Support Growth of Value-Based Centers of Excellence Solution that Delivers Better Health Outcomes While Driving Healthcare Savings
SAN FRANCISCO, May 30, 2023 /PRNewswire/ -- Carrum Health today announced an oversubscribed $45 million Series B financing led by OMERS Growth Equity. Revelation Partners joined the round along with return investors Tiger Global, Wildcat Venture Partners, Cross Creek and SpringRock Ventures. Carrum Health will use the funding to expand its growing oncology benefit offerings and scale its surgical care service lines to give employees access to the top 10% of doctors and providers across the country while helping employers control healthcare spending.
Teresa Lee, managing director of OMERS Growth Equity, will join Carrum Health's board of directors.
"We are very excited to partner with Carrum Health, a pioneering and differentiated player in the healthcare space, that offers an innovative, scalable approach in the shift to value-based care. With its Centers of Excellence (COE) network, digital platform and data-driven surgical episode bundling capabilities, Carrum Health has created a solution that allows for real-time and measurable value to employers, as well as a superior patient and clinician experience," said Lee. "The company is well-positioned to transform how healthcare is delivered and paid for, and we look forward to supporting the management team in realizing that vision."
Carrum Health's unique value-based program addresses acute care scenarios, such as orthopedic surgery and cancer treatment, which accounts for nearly half of total employer spend. Carrum Health's COE solution not only reduces unnecessary procedures by as much as 30%, leading to better patient outcomes, it can result in savings of up to 45% per care episode, according to a published study by the RAND Corporation.
"Every business in America is looking to manage costs, but they can't afford to sacrifice the benefits they offer employees. Carrum Health firmly believes that the path to reducing healthcare costs starts with delivering higher quality care," said Carrum Health CEO Sach Jain. "Our COE solution is proven to deliver significant savings on healthcare spend and generate measurable cost savings within the first year of deployment. In a time when employers are looking to consolidate benefits, we've seen 100% year-over-year growth in new customers and zero churn of existing customers."
Carrum Health has seen formidable momentum with its pioneering oncology COE offering and currently partners with top cancer care providers across the country, including AccessHope LLC, City of Hope, GRAIL LLC, Memorial Sloan Kettering Cancer Center and University of Chicago Medicine. In 2022 alone, the company added six new partners, including CVS, Included Health, Accolade, Rightway, SWORD Health and Virgin Pulse.
About Carrum Health
Carrum Health is a value-based healthcare platform delivering higher quality care while helping self-funded employers immediately reduce their spend for the most prevalent and costly conditions including cancer, musculoskeletal, cardiovascular, and bariatric. Utilizing a Centers of Excellence (COE) network, with an all-inclusive pricing model and 30-day warranty on care, Carrum members receive surgical and cancer treatment guidance and coordination through the entire care journey with upfront pricing, ensuring the highest quality, most appropriate care. Carrum reduces unnecessary procedures by as much as 30% and aligns cost and care incentives to save employers up to 45% per episode of care, all validated by peer-reviewed publications. Carrum's award-winning technology gives members access to a mobile app and Care Specialist that guides them through the surgery process, and a seamless platform integration to make COE adoption plug-and-play for employers. Backed by OMERS Growth Equity and Tiger Global, Carrum was named to the 2021 CB Insights Digital Health 150 and named one of the best places to work in 2022 by Built In. The company, founded in 2014, is headquartered in Silicon Valley. For more information, visit carrumhealth.com.