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Chicago-based primary care startup, Village MD has raised $100 million in a Series B financing round. The money is expected to fund the company’s expansion.
VillageMD said it will use the money to expand its primary care footprint in existing and new markets and enhance docOS, its primary care platform. It will also grow its Village Medical brand and scale its Village Medical at Home offering.
The startup says it has more than 2,500 primary care physicians in its network and manages $3 billion of total medical spending in value-based contracts. VillageMD’s physicians are contracted or employed in eight markets across the country care for an estimated 500,000 people.
Kinnevik AB, an international growth-focused investment company, led the financing round with an investment of $75 million. There was also participation from returning investor, Oak HC/FT and new investments from Town Hall Ventures and Adams Street Partners.
“As we continue to transform and disrupt the healthcare system, we want partners who embrace our mission of changing U.S. healthcare for the better. Partnering with these world-class investors, who share our vision and bring us fresh capital and new capabilities, allows us to impact more patients and ultimately improve the quality of care in our country,” said Tim Barry, Chief Executive Officer and co-founder of VillageMD.
Since it was founded in 2013, VillageMD has raised $216 million.
Among other services, VillageMD helps doctors negotiate better deals with insurers and provides data analytics that help doctors better coordinate care for their patients, it was reported.
The latest fundraiser is a thumbs up from investors for a company that is built on the promise of reducing readmission rates.
Chris Bischoff, senior investment director at Kinnevik, said primary-care physicians were best placed to coordinate care delivery and arguably have the greatest influence on healthcare outcomes.
“VillageMD enables physicians to move towards a primary care-led, high-value and risk-bearing clinical model. Their technology, operational and clinical support capabilities have yielded best-in-market outcomes and proven results. We are delighted to partner with VillageMD towards delivering healthier patients, happier physicians, and better outcomes,” Bischoff said.
Following the Series B financing round, Bischoff will join VillageMD’s board of directors.
The past few months have seen some rich pickings for VillageMD. In July, VillageMD acquired the 10-physician Memorial Clinical Associates (MCA) in Houston and a month later bought the Village Family Practice in Houston.
In May, the startup announced a multi-year partnership to provide in-home primary care for select WellCare Medicare members in Houston.
In a statement, VillageMD explained that through its [email protected] business unit, it was taking its primary care-based clinical model to WellCare Medicare Advantage members who do not have convenient access to high-value primary care providers.
“[email protected] will provide comprehensive primary care services integrated with pharmacists, nurses and social workers to meet the needs of homebound and medically complex seniors. VillageMD’s team will coordinate all home-based care services and can monitor the patient in the home through biometrics and advancing technologies,” the statement said.
In April, VillageMD announced a partnership with Walgreens Boots Alliance focused on providing adult patients in the Houston community with a transformative primary care experience.
Under the terms of the collaboration, the startup will operate state-of-the-art primary care clinics next to five Walgreens stores in the Houston area, with the first locations scheduled to open by the end of this year. The clinics will be known as Village Medical at Walgreens and will provide comprehensive primary care services, integrated tightly with pharmacists, nurses and social workers to meet the full suite of patient needs.
The clinics will occupy 2,500 square feet to serve the full adult continuum, including seniors.
However, Forbes reported that it was unclear when Walgreens might begin to generate revenue or profits from the partnership because the financial terms of the VillageMD collaboration were not disclosed. The website reported that Walgreens was under pressure from investors and some Wall Street analysts who do not see the partnership “accretive to earnings” for another two or three years.
In 2015, VillageMD raised $36 million in a Series A financing round.