Employer Direct Healthcare (EDH) Announces $92 Million Investment from Insight Partners, $1 Billion Valuation
Secondary investment in recognition of EDH's leading market position, strong fundamentals, and world-class leadership team
DALLAS, Dec. 19, 2023 /PRNewswire/ -- Employer Direct Healthcare (EDH), a leading specialty healthcare network solution, today announced a $92 million secondary investment from global software investor Insight Partners, bringing the company's valuation to $1 billion. EDH's existing institutional investors, Serent Capital, Redmile Group and Dundon Capital, will maintain their ownership interest in the business.
EDH has quietly grown to become one of the largest participants in the specialty networks, centers of excellence, and bundled payments categories for employers who self-fund healthcare coverage for their employees. Currently, EDH serves hundreds of self-funded plan sponsors across 1000+ employers (including approximately two dozen Fortune 500 employers and three dozen public sector entities), representing over 4 million people across the U.S. The EDH network includes more than 3,000 surgeons and oncologists and over 500 facility partners, spanning 157 metropolitan regions across the country – all of whom have gone through a rigorous selection process designed by EDH's medical advisory board.
Over the past 12 years, EDH has facilitated more than 43,000 surgical journeys, significantly reducing members' financial burdens by an average of $4,000. While doing so, EDH has lowered overall healthcare costs for employer clients by a total of ~$700 million since inception and will reduce overall healthcare costs for clients by approximately 2% in 2023.
"For too many Americans – even those with insurance – the financial and logistical burdens of a cancer diagnosis or need for surgery can be earth shattering. Every day, EDH is serving people at their most vulnerable – guiding members to high-quality providers that are close to home, at little or no cost to them," said John Zutter, CEO of EDH. "We're grateful for Insight Partners' significant vote of confidence as we continue to deliver excellent, affordable, and accessible specialty care for more communities. Further, this investment provides an attractive outcome for some of our earliest backers, including TEXO Ventures, while bringing Insight's world-class capabilities to bear for the future of the business."
"EDH represents the next generation of value-driven healthcare, attacking the largest sources of spend for U.S. employers – surgery and cancer – with a laser focus on quality and cost for clients and their employees," said Scott Barclay, Managing Director at Insight Partners. "EDH is a rare example of the right management team, the right model, and the right technology to truly change the outcomes and business of healthcare."
"Partnering with EDH has yielded very positive outcomes for our AutoZoners and they often share with us their wonderful experiences with SurgeryPlus," said Matt Harmon, VP of Compensation, Benefits and HRIS, Customer Satisfaction at AutoZone. "EDH helps to ensure that we're able to provide access to high-quality, affordable surgical care for our AutoZoners across the U.S.."
In the coming year, EDH will continue to build on market momentum and strong overall growth, including expansion of Cancer Care Direct, the industry's first end-to-end oncology solution, and several key partnerships with national health plans, navigators, and other industry-leading employer solutions.
EDH is also pleased to announce a number of key executive hires who bring deep, differentiated experience across healthcare, benefits consulting, technology, and government, including Chief Growth Officer Jamie McLeod, who previously held senior roles at One Medical and Virgin Pulse; Chief Product Officer Jeremy Leventhal, who previously held senior product roles at Hinge Health and Springbuk; Chief Client Officer Lindsey Conon, previously SVP of Account Management at Progyny; Chief Marketing Officer Shelly Towns, previously CMO at Marathon Health; Head of Communications Amy Dudley who served in top communications roles for then-Vice President Joe Biden, U.S. Senator Tim Kaine and the Chan Zuckerberg Initiative; Nicki MacManus, GM of EDH's oncology solution, who previously had executive leadership roles at CVS including GM of CVS Kidney Care; and Head of Channel Tim Kelly, who was previously Chief Commercial Officer at Carrot Fertility and President of National Accounts at Aetna, a CVS Company. Other recent hires include senior leaders from KindBody, WTW and WithMe Health.
About EDH
EDH is a market-leading healthcare services business providing high-quality and cost-efficient solutions for self-funded employers and their members. The company's highly selective provider networks transform healthcare for its members, facilitating access to top-quality care at fair prices nationwide.
EDH's first product, SurgeryPlus®, is the market-leading surgical benefit solution, providing full-service concierge and network services to millions of covered members across 1000+ employers. In 2022, the company launched a first of its kind, comprehensive end-to-end oncology solution, Cancer Care Direct®.
About Insight Partners
Insight Partners is a global software investor partnering with high-growth technology, software, and Internet startup and ScaleUp companies that are driving transformative change in their industries. As of June 30, 2023, the firm has over $80B in regulatory assets under management. Insight Partners has invested in more than 800 companies worldwide and has seen over 55 portfolio companies achieve an IPO. Headquartered in New York City, Insight has offices in London, Tel Aviv, and the Bay Area. Insight's mission is to find, fund, and work successfully with visionary executives, providing them with tailored, hands-on software expertise along their growth journey, from their first investment to IPO. For more information on Insight and all its investments, visit insightpartners.com or follow us on Twitter @insightpartners.
SOURCE Employer Direct Healthcare (EDH)
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