Dallas-based Employer Direct Healthcare on Tuesday announced a $92 million secondary investment from Insight Partners to bring the company’s valuation to $1 billion.
“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,” Employer Direct Healthcare (EDH) CEO John Zutter said in a news release.
“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. We’re grateful for Insight Partners’ significant vote of confidence as we continue to deliver excellent, affordable, and accessible specialty care for more communities.”
Institutional investors Redmile Group, Dundon Capital, and Serent Capital will maintain their ownership interests in EDH, which “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,” according to the release.
“Currently, EDH serves hundreds of self-funded plan sponsors across 1,000+ employers (including approximately two dozen Fortune 500 employers and three dozen public sector entities), representing over 4 million people across the U.S.”
Employer Direct Healthcare over the past 12 years has reduced members’ financial responsibilities by an average of $4,000, lowering overall costs for employer clients by $700 million since inception.
“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 of 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.”
The company also announced the hiring of several executives, including chief growth officer Jamie McLeod, chief product officer Jeremy Leventhal, chief client officer Lindsey Conon, chief marketing officer Shelly Towns, head of communications Amy Dudley, and head of channel Tim Kelly.
