Collective Health Secures Funding Led by SoftBank Vision Fund to Advance Expansion in the $1.2 Trillion Employer Health Insurance Industry

SAN FRANCISCO–(BUSINESS WIRE)–Health technology company Collective Health today announced a $205
million round of new funding led by the SoftBank Vision Fund.

Collective Health will use the new funding to:

  • Accelerate adoption of its enterprise healthcare platform with
    employers across the U.S. and deepen strategic partnerships across the
    industry
  • Deliver even greater technology capabilities to address fundamental
    health insurance service issues that plague U.S. consumers and
    employers alike

Accelerating adoption and deepening partnerships

Building upon the increasing demand from American employers looking to
address the ballooning complexity and cost of healthcare, Collective
Health is accelerating growth across all 50 states by strengthening its
national sales, engineering, and customer experience teams in San
Francisco, Chicago, and Lehi.

Collective Health makes health insurance work for everyone. With more
than 200,000 lives across over 45 enterprise clients in diverse
industries such as technology, agriculture, entertainment, and retail,
among others, Collective Health’s growth has gone from early adopter to
mainstream since launching in 2013.

Collective Health plans to add new partnerships to its already expansive
list of 80 integrated health partners on its open platform. These
include new local and national medical PPO networks, provider systems
serving the commercial market, and an increasing number of digital
health solutions that allow seamless integration for both employer
reporting and member engagement.

Advancing product development and technology capabilities

With much of the country’s health insurance industry still running on
antiquated and disparate technology systems, Collective Health is
rebuilding how a health plan works for both employers and the
populations they cover in one, unified software platform. With four
patents pending across its product suite, this new funding will support
Collective Health’s expansion of its product and engineering team to
accelerate development in core areas, including:

Reducing administrative burden and waste

By continuing to invest in improved claims and payments technology to
enhance decades-old systems, Collective Health plans to enable more
transparency around cost of care, faster payments, improved member
navigation, and rapid fraud detection. As a result, all employer clients
and members are able to make more timely, informed healthcare decisions
and receive the information they need—right when they need it.

Guiding members to treatments that meet their health needs while
helping to reduce costs

Collective Health enables employers to create a seamless experience for
their people and drive engagement with their ecosystem of solutions to
create healthier workforces. Collective Health’s patent-pending machine
learning engine, CH Cortex™, identifies individual member care
needs—from chronic disease management to radiology services and beyond.
The Collective Health app and Member Advocates then guide people to
appropriate partners, facilities, and providers for treatment.

Unlike many navigation and advocacy vendors who chase members after a
high cost claim, Collective Health is already engaged with people
through its products and Member Advocates, with 2/3 of claims preceded
by an interaction with Collective Health.

Delivering insights to employers that point the way to improved
population health

Collective Health Insights gives employers and their consultants a
window into the trends that drive healthcare spend; for most companies,
the size of that spend is second only to payroll. Insights will launch
new features and datasets that extend the Collective Health commitment
to helping employers better understand and manage emerging health
issues, so they can move from reactive to proactive and, in turn,
provide their people with better access to care.

The SoftBank Vision Fund led the round with additional participation
from PSP Investments, DFJ Growth, and G Squared, as well as existing
Collective Health investors including Founders Fund, GV, Maverick
Ventures, Mubadala Ventures, NEA, Sun Life, and other leading investors.

Quotes:

“We’re appreciative of our investors, both new and returning, in their
commitment to supporting our mission to fix the deepest rooted problems
in healthcare today,” said Ali Diab, Co-founder and CEO of Collective
Health. “We’re excited to have the SoftBank Vision Fund lead the round
given their proven track record of supporting category-defining
companies, and they share our vision for a better healthcare experience.
Whether working with more networks or helping facilitate direct
relationships between employers and provider systems, we will continue
to set the standard for the industry with a focus on the customer,
providing the healthcare experience we all deserve.”

“With U.S. healthcare costs at $3.65 trillion in 2018, Collective Health
is reinventing the healthcare experience for companies and their
employees. Their innovative business model and technology platform are
not only helping employers understand and optimize their healthcare
spend, they are also providing employees with a better healthcare
experience,” said Deep Nishar, Senior Managing Partner at SoftBank
Investment Advisers. “The company has continued to scale its business
across U.S. employers, and we are excited to help them drive further
innovation and adoption in the approximately $1.2 trillion employer
health insurance industry.”

“Meaningful improvements in healthcare aren’t going to come from
incumbents or consortiums,” said Mohamad Makhzoumi, General Partner and
Head of Healthcare Services and Healthcare IT investing at NEA. “The
healthcare industry needs a new foundation to run effectively and fill
the gaping holes where proper technology doesn’t currently exist. We
continue to double down on our partnership with Collective Health
because it’s the only company that has built a software platform capable
of reimagining the industry by focusing on the customer experience.”

“Sometimes working in benefits can feel like you’re on the hamster wheel
of problem solving,” said Alice Vichaita, Global Head of Benefits at
Pinterest. “People usually don’t remember their benefits on paper, but
everyone remembers their experience, and we’re always working to support
our employees in the best way possible. Collective Health is
unparalleled and well beyond the industry standard, providing us the
ability to better serve our people’s health demands while providing the
type of healthcare experience our people want.”

About Collective Health

Collective Health simplifies employer healthcare with an integrated
technology solution that makes health insurance work for everyone. With
more than 200,000 members and over 45 enterprise clients—including
Driscoll’s, Pinterest, Red Bull, Restoration Hardware, Zendesk and
more—Collective Health is reinventing the healthcare experience for
forward-thinking employers and their people across the U.S.

Collective Health is headquartered in San Francisco, CA with additional
offices in Chicago, IL and Lehi, UT. Founded in 2013, Collective Health
is backed by the SoftBank Vision Fund, DFJ Growth, PSP Investments, NEA,
GV, G Squared, Founders Fund, Maverick Ventures, Mubadala Ventures, Sun
Life, and other leading investors. For more information, visit https://www.collectivehealth.com.

Contacts

Collective Health
Laura Newell
[email protected]

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