Wellvana Health reels in $84M for value-based care
Wellvana Health, a value-based care technology player, announced an $84 million fundraise.
Why it matters: The enablement of VBC is a necessity in today's health care world as physicians still struggle to move from fee-for-service models, Aaron writes.
Details: The investment was led by Heritage Group and Valtruis, a Welsh, Carson, Anderson & Stowe portfolio company.
- Memorial Hermann Health System, the largest not-for-profit health system in southeast Texas, also participated.
- Terms were not disclosed, but a source close tells Aaron the investment represents a minority stake.
- The round brings Wellvana’s total funding since November 2020 to approximately $140 million.
Catch up fast: Wellvana came to market late last year with SVB Securities advising (yes, that SVB), Axios reported in October.
- Wellvana was projecting over $1 billion of revenue and around $25 million of EBITDA in 2023, per that report.
- Revenue and EBITDA were estimated to surpass $2 billion and $100 million, respectively, in 2024, sources told Axios at the time.
Of note: Wellvana declined to comment on financials or on its advisory relationship with SVB Securities, which has stated intent to continue operations independently of parent company SVB.
How it works: Wellvana sets up contracts with provider groups to help them succeed with value-based care.
- With presence in 22 states, Wellvana helps physicians, health systems, home health operators and senior care facilities transition from fee-for-service payment models.
What's next: Fresh funds will go toward continued growth in existing markets and new U.S. geographies.
What they're saying: For Valtruis, WCAS's value-based care engine, Wellvana's robust underwriting program helps assume more downside risk for physician partners, says Karey Witty, managing director at Valtruis and operating partner at WCAS.
- This is especially true for practices in rural and underserved communities and health systems that experience tight margins, he continues.
- “Wellvana’s model is at the core of our mission at Valtruis to accelerate the growth and adoption of value-based care,” Witty says.
- “We are confident that Wellvana’s solution-oriented model is best positioned to continue supporting physicians’ transition to a modern value-based care system," he says.
Flashback: Wellvana was co-founded by industry veteran and entrepreneur Charlie N. Martin Jr., who put up a $4.5 million investment in 2018 through his Nashville VC shop, Martin Ventures.
- Martin founded and was CEO of Vanguard Health Systems, ultimately selling it to Tenet Healthcare for $4.3 billion in 2013.