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Exclusive: Turquoise Health nets $30M Series B for transparent pricing

Illustration of a health plus-shaped price tag with dollar signs printed on it.

Illustration: Gabriella Turrisi/Axios

Turquoise Health, a San Diego-based health care pricing platform, raised $30 million in Series B funding, CEO Chris Severn tells Axios exclusively.

Why it matters: Price transparency data has become critical after U.S. regulators passed legislation requiring hospitals to provide clear, accessible pricing information about its items and services.

Details: The round was led by Adams Street Partners, with participation from Yosemite, as well as existing investors Andreessen Horowitz and BoxGroup.

How it works: Turquoise's platform lets users browse and compare prices of elective services offered by hospitals, as well as compare prices between insurance services. Users can browse by the procedure and provider.

  • Its platform is designed to ease administrative burden with contract modeling, as well as help payers and providers stay in compliance with CMS rules.
  • The company serves more than 160 health care customers and 30 health systems.
  • "The vision is to eliminate financial complexity of healthcare," Severn says.

Catch up quick: The company raised $20 million in Series A funding in May 2022, preceded by a $5 million seed round in July 2021.

What's next: The company will be opportunistic on future fundraising, Severn says.

What they're saying: Yosemite investor MattĀ Bettonville says Turquoise's goal is to improve price transparency "by simplifying over 500 terabytes of messy data to help providers, payers, and consumers understand healthcare costs."

  • "Turquoise has seen very rapid adoption among top-tier health systems and health insurers, despite tightening budgets across these customer segments," Adams Street's Tom Bremner says.
  • As pricing disclosure requirements become increasingly stringent, demand for offerings like Turquoise's will grow, he adds.
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