Patient journey focused software-as-a-service company Cohere Health announced that it closed an additional $10 million in funding, bringing its total raised $20 million to date.
This Series A extension comes just two months after Cohere Health’s initial $10 million Series A funding in July 2020. Founded in 2019, Cohere Health employs more than 100 people with an office in Boston, Massachusetts.
Flare Capital Partners and Define Ventures led the extended Series A round.
Michael Greeley, Co-Founder and General Partner at Flare Capital Partners and board member for Cohere Health, said: “The current state of healthcare delivery demonstrates the fundamental need for flexible and innovative start-ups to lead the way to change with disruptive solutions. Cohere Health provides such an advancement through its real-world solutions that help clinicians and health insurers capitalize on transforming the face of care delivery.”
The company plans to use new funds to enhance its cloud-based platform CohereNext. The platform is designed to provide interoperability to existing healthcare infrastructure and the emerging digital health economy, the company said.
According to the company, CohereNext supports physicians and patients starting with diagnosis, facilitating and auto-approving entire treatment plans based on evidence-based guidelines, coordinating PCPs and specialists, identifying the optimal places of care, and referring patients to appropriate care programs. It also supports overall care coordination and reduces the burden at physician practices while speeding up patient access to treatment, the company added.
A recent JAMA article estimated that 25% of healthcare spending is waste due to administrative complexity, failure of care coordination, and low-value care. “The tragedy of COVID-19 has reinforced that the basic infrastructure supporting healthcare innovation is fundamentally broken. The shift from fee-for-service to value-based-care requires enabling interoperable capabilities to facilitate care around the interests of patients, and as a result, Cohere Health continues to rapidly grow and attract additional investments,” said Siva Namasivayam, CEO and founder of Cohere Health.
Digital health companies raised $10.3 billion VC funding during the first nine months (9M) of 2020, according to the latest Mercom’s 9M 2020 Digital Health Funding Report.