Company raises $110 million to drive expansion of technology and service platform that helps U.S. employers optimize the delivery of employee healthcare and manage their $1.2 trillion annual spend
Feb 28, 2018—San Francisco—Collective Health today announced the launch of the next generation of The Collective Health Platform, the first Workforce Health Management System, which breaks down the data and user experience silos in employer healthcare. The Collective Health Platform also provides the industry with a common technology and service infrastructure for innovation, accelerating the power of the Employer-Driven Healthcare Economy.
“The way we access, pay for, and improve healthcare in the U.S. is undergoing a fundamental shift—one driven by employers. Employers not only pay for the vast majority of private healthcare in America, they are also running healthcare plans that pioneer the most innovative approaches to delivering care, creating a massive market opportunity for a new generation of healthcare companies,” said Ali Diab, CEO and co-founder of Collective Health, who recently published American Employers are in the Healthcare Business. “However, employers’ ability to drive positive change in healthcare is being hampered by antiquated technology that keeps all pertinent healthcare and financial information locked in disparate, legacy systems. The Collective Health Platform eliminates this fragmentation, removing inefficiencies, lowering costs, and improving the experience for American employers and workers.”
Collective Health also announced it has raised $110 million in funding to accelerate development of The Collective Health Platform and scale operations to support its rapid customer adoption. The financing comes from existing investors—including NEA, Founders Fund, GV, and Maverick Ventures—and new investors including Sun Life Financial and Mubadala Ventures.
Unveiling The Collective Health Platform
While individual healthcare delivery has become increasingly more innovative and personalized, the back-office administration of employer healthcare plans—the financial infrastructure; how data like medical claims, and program utilization moves through multiple players; and the technology that underpins it—still runs on antiquated technologies like fax machines and CD-ROMS, and remains largely siloed.
The Collective Health Platform breaks down these silos, integrating medical claims, people data, and program utilization across the healthcare system to connect people to the right care at the right time. The result? Collective Health’s enterprise clients have reigned in healthcare costs—keeping their medical trend flat compared to the 5% industry average increase—by optimizing healthcare utilization and without compromising their people’s satisfaction. Members give Collective Health customer satisfaction scores in line with the best consumer brands.
An open, extensible software and service offering purpose built for modern self-insured employers, The Collective Health Platform combines:
- Plan Administration and Data Engine
At the core of The Collective Health Platform is a health plan administration and data engine that replaces outdated processing systems with an integrated, cloud-based software system that runs employers’ health plans with efficiency, transparency, and control. It processes every part of the plan—including medical, dental, vision, and pharmacy eligibility, claims, and payments—and tracks utilization of healthcare programs and applications.
- Data Intelligence Layer and APIs
Sitting on top of the integrated administration and data engine, Collective Health’s system automatically gleans patterns and insights from millions of data points resulting from: eligibility files; medical, pharmacy, dental, and vision claims; utilization of healthcare programs; and member search queries. It uses data science and machine-learning technologies—including Collective Health’s patent-pending Cortex technology—to help engage members with the right care at the right time, and its analytics help employers more effectively manage and measure benefits programs and vendors. It also helps employers harness the rapidly growing healthcare ecosystem with an open, extensible user experience framework and APIs that enable the rapid implementation of best-in-class digital health solutions, innovative healthcare programs, and essential network, COBRA, health savings accounts, stop loss, and benefits administration partners.
- Employer and Member Suites
Employers and members harness the power of the Platform through robust suites of intuitive tools, and technology- and human-enabled services.
- The Employer Suite streamlines key processes and gives benefits leaders at-a-glance performance management through aggregate claims, engagement, eligibility, financial/payment, and partner dashboards. Benefits leaders increase efficiency through dedicated client support, financial management and payment services, and automated eligibility management powered by patent-pending technology.
- The Member Suite gives members a single source for accessing all their health benefits. It’s comprised of a web portal, Android and iPhone mobile applications, and direct communications that feature simple language, and user-friendly design to help members understand, navigate, and pay for healthcare. Concierge services ensure the experience doesn’t lose its human touch—members benefit from unparalleled support from real people, simplified open enrollment, and integrated care navigation and support programs.
Collective Health’s Rapid Growth
In the last year, Collective Health has grown its client base by 100 percent—it now serves 30 enterprise clients and 120,000 members in all 50 states.
To accommodate its rapid growth, Collective Health is opening a new office in Chicago and is expanding its presence in Georgia, New York, and Southern California.
The company, which now employs more than 350 people, has built a unique and ambitious team of healthcare experts, finance and operational experts, as well as technologists, engineers, and designers. It is led by an experienced team of business leaders from some of the largest U.S. technology, insurance, and healthcare players.
“American employers, through the benefits they provide, drive the biggest portion of the healthcare system, and are demanding more sophisticated tools to improve the performance of their plans and the health of their employees,” said Dan Fishbein, President of Sun Life Financial U.S. “We share a deep client focus with Collective Health, and are thrilled to work more closely with their team to innovate and deliver smarter, more flexible products. Together, we will transform the benefits experience for self-funded employers and their employees.”
“As we expand our presence in Silicon Valley, we are looking for companies that are applying technology to address pressing business issues—particularly issues with a global impact,” said Ibrahim Ajami, Head of Mubadala Ventures. “We’re excited to work with Collective Health and proud to welcome the company to our portfolio. This investment is in line with Mubadala Ventures’ strategy and we are committed to supporting them in their mission to improve healthcare for companies and their employees across the U.S.”
About Collective Health
Collective Health is powering the Employer-Driven Healthcare Economy with the first Workforce Health Management System, giving employers a platform to simultaneously manage their healthcare investment and take better care of their people. With more than 120,000 members and 30 enterprise clients, Collective Health is reinventing the healthcare experience for self-funded employers and their employees across the U.S. Founded in October 2013 and headquartered in San Francisco, Collective Health is backed by NEA, Founders Fund, GV, Sun Life and other leading investors. For more information, visit https://www.collectivehealth.com.
Employers have been paying for the vast majority of private healthcare in this country—acting as a passenger, not a driver. Today, things are different.
American employers are in the healthcare business. It’s time they had the data and technology to drive it.