Devoted Health raises $300m Series B to fund expansion

Devoted Health, a new Medicare Advantage company, has raised $300 million in Series B round to fund its expansion, and build out technology and operations.

The company has also opened enrollment into its Medicare Advantage plan across eight counties in south and central Florida.

The Series B funding was led by Andreessen Horowitz, and included new investors such as Premji Invest and Uprising as well as existing investors.

Devoted Health was founded in March of 2017 by Todd Park, co-founder of Athenahealth and Castlight Health and former US chief technology officer; Ed Park, founding engineer and former CTO and COO at Athenahealth; Bryan Roberts, partner at Venrock and Devoted's founding investor; and Bob Kocher, MD, a partner at Venrock and Devoted's founding chief medical officer.

In the second quarter of 2017, Devoted raised $7.4 million in funding and seed investments from Venrock, Todd Park, and Ed Park. In October 2017, the company raised a Series A round of $61.95 million from investors including Oak HC/FT, Venrock, F-Prime Capital Partners, Maverick Ventures, and Obvious Ventures.

"We are on a mission to deliver to our members the kind of care that we all would want for our own family," said Ed Park, CEO and co-founder of Devoted Health. "To do that, we have started from a clean sheet of paper, building a 'payvidor' – a combination of a 'payor' and 'provider' of health care services -- that in addition to partnering with the most trusted doctors and hospitals, will be a provider of care services in the home designed to help keep our members healthy. Having industry-leading technology is central to what we do. With our latest funding, we will continue to grow the world-class team building out our technology and operations and will expand Devoted into additional markets."

Bill Frist, MD, a member of Devoted's board and an investor in the company, said: "In various parts of the country, there are local examples of organizations dramatically improving health care outcomes and bringing down costs. What makes Devoted so exciting is that they have the team, operating model, technology, and capital to scale this kind of performance nationwide."