Arbital Health Completes Acquisition of Santa Barbara Actuaries and Closes Series A Financing

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Jan 04, 2024, 10:00 ET

Arbital Health's Vision is to be the Neutral Adjudicator of Outcomes-Based Contracts, Helping Healthcare's Shift to Value-Based Care

Santa Barbara Actuaries is a leading specialist in the design and measurement of value-based programs

$10 Million Series A Investment Led by Transformation Capital, with Participation by Shaper Capital, Healthy Ventures, and individual data and healthcare luminaries

SAN FRANCISCO, Jan. 4, 2024 /PRNewswire/ -- Arbital Health, a technology startup focused on accelerating the healthcare industry's transition to value-based care, today announced the acquisition of Santa Barbara Actuaries, Inc. (SBA), and $10 million in Series A financing led by digital healthcare investor Transformation Capital .

Arbital Health, co-founded by Travis May and Brian Overstreet, launc hed in November 2023 and recently announced its Leadership Team and Advisory Board, including former leaders of the FDA and VA, healthcare business leaders, and value-based care experts. Arbital Health is building technology to help companies design and measure outcome-based contracts, serving as a neutral third-party adjudicator to assess whether outcomes were fulfilled.

Santa Barbara Actuaries is a leading actuarial and healthcare consulting firm specializing in value-based care and data analytics solutions. The acquisition of Santa Barbara Actuaries by Arbital Health provides the company with a best-in-class value-based care actuarial team along with top-tier clients across the value-based care landscape.

"We are very excited to welcome the Santa Barbara Actuaries team to Arbital Health. SBA has established itself as a leading solutions provider for the entire value-based care ecosystem. Their stellar reputation for impartial analysis, statistical rigor, and best-in-class services and solutions are a key element to our mission to become the neutral, third-party utility for the design, measurement, and adjudication of outcome-based contracts in U.S. healthcare," said Brian M. Overstreet, President & CEO of Arbital Health. "I am also pleased to welcome Transformation Capital as the lead investor in our $10 million Series A financing. Solving the misalignment of incentives in healthcare is one of the most important challenges of our era, and we are thrilled to have assembled an incredible set of investors, advisors, and team for the journey ahead."

Dr. Ian Duncan FSA, MAAA, President of Santa Barbara Actuaries said, "Since our founding, Santa Barbara Actuaries has been at the forefront of supporting value-based care by building one of the best actuarial teams and serving some of the most innovative clients. Arbital Health's expertise in productizing and scaling healthcare technology platforms will enable us to bring better incentive alignment to all healthcare stakeholders via value-based care. This announcement stands as a testament to the talent, hard work, and innovation of the Santa Barbara Actuaries team."

Arbital's initial product offering will include the following:

Value Assessment for Point Solution Health Vendors: Accurately quantify the economic value your healthcare intervention delivers and drive even higher ROI through leveraging Arbital's predictive analytics for engagement optimization.
Value Analysis for Payers, Including Employers and Health Plans: Understand the true economic value your employees and members are getting from the point solutions you have deployed.
Actuarial Advisory: Through SBA's differentiated expertise, Arbital Health will continue to provide a broad range of consulting services for risk-bearing organizations.

Investment Round

In addition to announcing the acquisition of Santa Barbara Actuaries, Arbital Health also completed its $10 million Series A financing, led by Transformation Capital. Other institutional investors in the funding round include Shaper Capital, Healthy Ventures, Flex Capital, and Underdog Labs.

"We are excited to partner with Brian, Travis, and the Arbital Health team on their mission to create the neutral third-party utility for the design, measurement, and adjudication of value-based care," said Scott Rosen, Partner at Transformation Capital. "We believe that Arbital Health's unique approach, team, technology, and track record position it well to be a major force in this space for years to come."

In conjunction with the acquisition and financing, Dr. Ian Duncan and Scott Rosen will both join Arbital Health's Board of Directors to serve alongside Chairman Travis May and Brian Overstreet. Dr. Ian Duncan will also serve as Chief Actuary for Arbital Health.

About Arbital Health
Arbital Health's vision is to become the neutral third-party adjudicator of outcomes-based contracts, unlocking and accelerating the $1 trillion shift to value-based care in the U.S. healthcare system. We aspire to be the trusted umpire adjudicating every outcome-based contract in healthcare, whether contracts are between life sciences companies and payers, payers and providers, or employers and digital health companies. We will make it simple to adjudicate contracts and unlock the trillion-dollar shift to value-based care in America. In doing so, we will help to solve healthcare's biggest problem. For more information, and to explore career opportunities available, visit Arbital Health at https://www.arbitalhealth.com or follow on LinkedIn.

About Santa Barbara Actuaries
Santa Barbara Actuaries is an actuarial and healthcare consulting firm specializing in value-based contracting, predictive modeling, and data analytics. Dr. Ian Duncan FSA MAAA is the President and Founder of Santa Barbara Actuaries. Ian has extensive experience in care management program operations and evaluation. He has published over 80 peer-reviewed studies of care management program outcomes and associated predictive models. Ian is concurrently a Professor at UCSB and author of Healthcare Risk Adjustment and Predictive Modeling and Managing and Evaluating Healthcare Intervention Programs (Actex Publications). For more information visit www.sbactuaries.com.

About Transformation Capital
Transformation Capital is a digital health growth equity firm dedicated to supporting commercial stage companies focused on improving people's health and the sustainability of the healthcare system. The firm was founded on the premise that investing in healthcare requires both a sophisticated understanding of the healthcare system, including the prevailing market forces and resulting opportunities, as well as deep connections with decision makers across key providers, payers and digital health innovators. Transformation Capital has invested in digital health companies across the ecosystem, including Datavant, Apree, Capital RX, Health Catalyst, Sword, Grow Therapy, Jeenie and Groups.

CONTACTS

Media Contact for Arbital Health and Santa Barbara Actuaries
Jesica Freeman
[email protected]

Media Contact for Transformation Capital
Melanie Albanese
[email protected]

SOURCE Arbital Health