Pediatric health startup Zarminali Health secured a $40 million seed from General Catalyst, CEO Danish Qureshi tells Axios exclusively.
Why it's the BFD: As of last year, just 37 percent of hospitals in the U.S. were offering pediatric services, while new doctors are avoiding the specialty.
How it works: Zarminali is building a multispecialty pediatric group, with in-person clinics offering primary and urgent care, as well as telehealth and messaging for non-urgent questions.
- The company has one clinic in Michigan.
What's next: Funding will help Zarminali grow its national footprint and "make selective acquisitions in some states," Qureshi says.
- Zarminali hopes to have a presence in at least 30 states over the next 24 to 36 months. The seed has a one-to-two-year runway.
Between the lines: The company will follow a fee-for-service model for its first three years before transitioning to a value-based framework.
- "A lot of practice groups in whatever specialty are rushing to value-based care before they really know what they're doing," Qureshi says.
- "We will first prove out our approach to care and our scalability in the commercial fee-for-service environment and track quality outcomes and the ability to control cost," he adds.
What they're saying: "Combining that passion with a thoughtful business model and an eye on innovation is what has enabled the company to scale so quickly from inception in July to their first operational practice in November," says GC managing director Holly Maloney.
By the numbers: Over 15 million children (one in four families) need specialty care. A 2022 AMA survey of 13,000 U.S. pediatricians found over half reported burnout.
