[Updated 10/23/17, 12:27 pm. See below.] Devoted Health, a new healthcare company created by former Athenahealth leaders, has raised nearly $62 million from investors, according to a document filed with the SEC.
Devoted has now raised a total of $69 million from Venrock and other groups and individual investors, spokesman Kenneth Baer said in an e-mail to Xconomy. [This paragraph added.—Eds.]
The Newton, MA-based startup plans to launch Medicare Advantage health insurance plans in 2019, according to its website. The seniors covered by its insurance will receive support from the company’s “personal health guides,” who will help answer patients’ questions and make house calls when they need extra assistance. Devoted also intends to provide technology-enabled health services, such as facilitating tele-visits for urgent care and getting second opinions from remotely located doctors.
The company is “guided by a deep belief that every member should be treated like we would treat our mom or dad: with loving care, a deep commitment to their health and well-being, and respect for them and their time,” Baer said in the e-mail. “We are heartened that a group of investors shares our vision, and we are working hard to deliver on it.” [This paragraph added.]
Devoted fits into a few themes in healthcare, including the growing use of telemedicine and the focus on preventive care for patients, in order to avoid hospital visits.
The company was formed earlier this year by Ed Park, the former Athenahealth chief technology officer and chief operating officer, and Todd Park, who previously co-founded Athenahealth and Castlight Health, and who served as U.S. chief technology officer under former President Barack Obama. Athenahealth (NASDAQ: ATHN) is a Watertown, MA-based healthcare technology company valued at more than $5 billion, and San Francisco-based Castlight (NYSE: CSLT) is a healthcare software firm valued at more than $500 million. Ed Park (pictured above) serves as the new venture’s CEO, and Todd Park is its executive chairman, according to Devoted’s website.
According to its website, Devoted’s board members are Venrock partners Bryan Roberts and Bob Kocher, who is also the startup’s chief medical officer; Kathleen Sebelius, the former Secretary of the U.S. Department of Health and Human Services under Obama; Bill Frist, a medical doctor and former U.S. Senate Majority Leader; and the company’s two co-founders.
The company is hiring, Baer said, but he declined to say how many employees it currently has and how many people it plans to add. The fresh capital will also fund technology development and building out the company’s operations, he said. [This paragraph added.]
[Top photo by Keith Spiro Photography, taken during Xconomy’s XSITE event in 2013.]