Carrum Health Raises $40 Million to Transform Healthcare Delivery and Lower Costs through First-of-Its-Kind Digital Marketplace
Carrum Health, the first digital health company connecting employers and employees to Centers of Excellence (COEs) through a technology-powered platform for better, more cost-effective healthcare, today closed $40 million in Series A funding led by Tiger Global Management LLC, with participation from GreatPoint Ventures and Cross Creek and return investors Wildcat Venture Partners and SpringRock Ventures. Carrum Health will use this funding to expand its offerings to more employers, provide access to additional healthcare services and enhance technology to support its fast-growing roster of clients and providers.
Carrum Health is applying the latest technology to enhance care, increase access and improve outcomes. With its digital marketplace, patient app and AI-driven insights, the company delivers value-based care that is more economical for self-insured employers, increases employee access to top-performing providers and drives practice growth for providers.
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A Digital Marketplace for Premier Care
Carrum Health developed the first-ever digital marketplace that enables employers to purchase healthcare services directly from top providers for a bundled price. This approach helps employers curb rising healthcare spending at a time when surgery-related costs account for as much as 50% of expenses, with 25% of surgeries not being medically necessary, according to data from Carrum Health.
“Working with Carrum, self-insured companies can offer their employees the best care from top surgeons while effectively managing their spend. Carrum is going after a $100 billion market opportunity, and we’re very excited to partner with Sach and his team,” said Scott Shleifer, partner at Tiger Global Management.
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Carrum Health’s COE digital platform eliminates the complexities of co-pays, deductibles and coinsurance, while ensuring that patients get exceptional care, leading to better outcomes, at a lower, predictable cost. With this model, Carrum Health’s providers offer a 30-day warranty on each procedure, including any costs associated with the care. Because clinical quality is of utmost importance, Carrum Health evaluates both the COE and the surgeon with a proprietary 50-point evaluation process, ensuring only the top 10% of providers are invited to join the platform.
“Carrum Health caught our attention because they have created a technology solution that, when combined with a high-touch personalized service, is already bending the cost curve and improving the overall health and wellbeing of surgery populations,” said Ray Lane, managing partner at GreatPoint Ventures. “Carrum Health is changing both sides of the healthcare market, impacting how providers can build their practices and how employers procure and pay for their services. We are excited to help them expand their footprint nationally.”
AI-Driven Insights for Benefits Managers
Carrum Health saw an opportunity to not only change how healthcare is paid for, but also how it is delivered. At the heart of Carrum Health’s marketplace platform is a layer of analytics that integrates data from numerous sources, including claims information, to monitor cost and quality. Using machine learning, Carrum Health identifies the people most at risk for surgery and utilizes post-discharge data collection to monitor recovery and prevent complications that contribute to readmissions.
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