Insurance coverage expertise startup Shiny Well being has acquired Zipnosis, a telehealth platform supplier.
Cain Brothers, which served as Zipnosis’s unique monetary advisor throughout the transaction, made the announcement. Although Shiny Well being confirmed the information, they declined to offer any extra particulars concerning the deal.
The acquisition “displays a shared imaginative and prescient: reducing prices and offering higher entry to high quality, reasonably priced, customized care,” Cain Brothers mentioned in its announcement.
Bright Health, a Minneapolis-based startup, operates in additional than 50 markets throughout 13 states. It supplies particular person, household, small enterprise and Medicare Benefit plans and works with native companions — together with well being techniques, accountable care organizations and doctor teams — to develop and handle supplier networks. It additionally affords an IT platform that can be utilized to trace healthcare prices.
To this point, the insurtech firm has raised more than $1.5 billion in funding.
Shiny Well being’s determination to accumulate Zipnosis marks its foray into telehealth. Zipnosis, additionally primarily based in Minneapolis, supplies a telehealth platform that’s getting used at almost 60 well being techniques throughout the nation.
Zipnosis had a busy 2020. Its digital care platform was used to display and deal with more than 2 million patients, and it entered into a strategic partnership with Upfront, combining its platform with Upfront’s affected person communication and customized engagement answer.
The corporate has raised $24.8 million in funding since its inception in 2009, in response to Crunchbase.
The information of the acquisition comes only a few days after experiences of Shiny Well being planning to raise up to $1 billion in an IPO that’s anticipated to be launched within the second quarter of 2021.
The corporate additionally recently announced plans to accumulate Central Well being Plan of California, Inc., which can add about 110,000 customers to Shiny Well being’s roster of greater than 500,000. Nevertheless it had not beforehand indicated an curiosity in telehealth-related acquisitions.
The U.S. telehealth market is booming, thanks in no small half to the Covid-19 pandemic. Somewhat over 30% of all visits have been offered through telemedicine throughout the public well being disaster, and the weekly variety of visits elevated 23-fold in contrast with the pre-pandemic interval, in response to a examine recently published in Health Affairs.
Different insurance coverage expertise startups have taken benefit of this quickly rising market and made strikes into telehealth. Shiny Well being’s rival Oscar Well being — which additionally not too long ago introduced plans to raise up to $1.05 billion in an IPO — rolled out a virtual primary care product in a few of its markets this 12 months.
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