Carrum Health raises $6.5M in seed funding
Carrum Health, which offers a comprehensive cloud-based bundled payment platform for employers, announced Wednesday that it received $6.5 million in seed funding, led by venture capital firm Wildcat Venture Partners with participation from investment firms SJF Ventures and SpringRock Ventures.
The company offers a service that links providers, employers and employees to enable them to develop bundled payment arrangements that seek to achieve high quality care for providers and savings for employers and their workers.
“Through a unique combination of business model innovation, technology and big-data analysis, Carrum Health is creating a new healthcare model that delivers better healthcare outcomes and lowers the cost,” says Phyllis Whiteley, a venture partner at Wildcat Venture Partners, a firm that invests in young technology startups.
By using bundled payments, costs of medical procedures can be reduced significantly, and with this new funding, Carrum Health specifically wants to develop new bundled payment approaches that will cover all the costs involved in spinal, cardiac and orthopedic surgeries as well as provide access to bariatric and maternity service lines. The cash infusion will enable Carrum Health to improve marketing and technology investments to attract new customers to its information technology-based business model.
Sach Jain, CEO of Carrum Health, says analytics support the company's efforts to engineer its payment method by streamlining various integration points, which in the past, employers and healthcare providers had to manually sort so that the payment programs could function properly. This new payment platform will increase the bundle model’s effectiveness and scalability, says Jain.
“Not only does Carrum’s platform help to rapidly expand current programs to new bundles and new markets, but it also makes such programs scalable to employers of all sizes,” Jain says. “In addition, we are using some of the cutting-edge analytics and patient-focused tools powered by deep learning to drive employee communication and behavior, which significantly improves the impact and effectiveness of these programs.”
Carrum Health determines the pricing of its healthcare bundles by collecting and examining public and private claims data. When deciding to enter a specific healthcare market, the startup uses its own algorithms to calculate the price points for bundled payments that would be attractive to employers who are self insured and also so providers can make healthy margins. In doing so, Jain says this improves the process of finding an agreeable price between employers and providers.
“This is very different than a traditional health plan/payer negotiation where discounts are negotiated in exchange of volume,” says Jain. “Our provider partners really value this partnership approach where Carrum essentially becomes an extension of the provider’s sales force to bring their product (bundles procedures, excellent care quality, etc.) to the market through a new distribution channel.”