In the latest funding rounds, venture capital was channeled into digital health and health tech companies.
Morgan Health Invests in Data Analytics Provider
Morgan Health, a JPMorgan Chase business, has invested $25 million into technology provider Merative. The Ann Arbor, Michigan-based company serves 40% of Fortune 100 employers, according to a Morgan Health news release. The funds will be utilized to scale the company’s data needs and support software products. Morgan Health will also assist Merative with technical expertise.
In a Morgan Health statement, CEO Dan Mendelson said, “For years, employers have increased their spending on health care without commensurate improvements to the quality of care. Actionable data can improve patient outcomes by helping employers target the right innovations and interventions. It’s critically important to put scalable, customizable solutions into employers’ hands to empower them to be more sophisticated purchasers of health care and make more precise decisions regarding the needs of their populations.”
Merative’s platform, Truven, includes Health Insights to evaluate benefits performance and provide a more comprehensive view of a company’s healthcare circumstances. The platform also includes claims data from more than 450 suppliers, employers, state Medicaid plans, and health plans.
In 2022, private equity firm Francisco Partners purchased IBM Watson Health for $1.5 billion. Francisco Partners later started Merative as a standalone data analytics brand.
To focus on improving employer-sponsored healthcare, Morgan Health was given $250 million to invest. Mendelson said in an interview that the company takes minority positions in companies to reduce costs, improve equity, and enhance outcomes.
General Catalyst Invests in Soda Health
General Catalyst led the round as Soda Health closed a $50 million Series B financing round and plans to use the funds to scale operations. The health tech company, which manages Medicare Advantage supplemental benefits, said in a news release that it will “launch new data products and expand capabilities to new CMS-compliant benefit categories and gap closure capabilities to improve star ratings.”
Medicare Advantage’s surging enrollment is largely driven by the appeal of supplemental benefits. Consumers are drawn to these benefits due to the inclusion of extra dollars in their coverage. Because technology has not kept pace with demand, Soda Health believes the administration of supplemental benefits across the industry is not at an acceptable standard. The company explains that members don’t grasp how to best use their benefits or what products they can purchase. Members currently use funds on goods and services at grocery chains such as Kroger, CVS, Hy-Vee, and Albertsons.
To improve the member experience and outcomes, Soda Health allows health plans to launch benefit programs with access to a large retail network. This enables retailers to more easily deliver product benefits for pharmacy services and other goods. These changes will enable plans to improve star ratings while allowing members to enjoy a more streamlined navigational experience.
Robby Knight, co-founder and CEO of Soda Health said in a statement, “We are on a mission to ensure supplemental benefits add value to all in the healthcare ecosystem—that they keep patients healthier, enable retailers to leverage their relationship with consumers, and provide a key touchpoint to patients for payors.”
General Catalyst earned capital from Bruce Broussard, the former Humana CEO, who recently became a partner at VC Firm Define Ventures, another Series B investor.
In a news release, Broussard said, “Soda Health has amassed a high-value network with the most innovative retailers in the country They are uniquely positioned to create a new incentive structure to better serve members, health plans, and retailers to improve outcomes and lower the cost of care.”
Caitlin Donovan, former Uber Health head and current partner for General Catalyst, will join Soda Health’s board.
