Crossover Health Secures $168 Million To Expand Telehealth Service

Crossover Health, a provider of in-person and virtual care services for employers and health plans, raised $168 million in an oversubscribed Series D funding round.

Deerfield Management Company led the funding round. Additional new investors include Perceptive Advisors, OrbiMed Advisors, Foresite Capital, Avidity Partners, SharesPost100 Fund, Irving Investors, and PFM Health Sciences.

Crossover Health would use the new capital to expand its Connected System of Health for employers and payers. The company’s Connected System of Health delivers online care in all 50 states in the U.S, as well as in-person care in 48 health centers in 11 states, the company said in a press announcement.

Founded in 2010, Crossover Health currently services over 400,000 eligible employees and dependents throughout the country. The company offers primary care and other services such as mental healthcare and health coaching to health plans and self-insured employer members.

“Today’s financing signifies confidence in our vision and ability to address the evolving healthcare needs of self-insured employers and traditional payers who are looking for more care delivery accountability that achieves lower cost, higher quality, and a consistently exceptional experience for their employees and members,” said Scott Shreeve, MD, Founder and Chief Executive Officer of Crossover Health.

Scott Shreeve added: “We have always been driven by a clear and compelling vision for how healthcare should be – comprehensive, simple, and above all, engaging. We achieve this with a value-based approach that includes team-based primary care, physical medicine, mental health, and care navigation as part of our in-person and online Primary Health service.”

Crossover Health kicked off a pilot program with Amazon last summer, in which Amazon’s Dallas-Fort Worth area employees would receive tech-enabled in-person and digital care through the Crossover Health platform. The company said it was aimed to set up 20 such centers around the country by the end of the pilot.

Telehealth companies secured a record $4.3 billion VC funding during 2020. The funding amount was a 140% increase in 2020, compared to $1.8 billion raised in 2019. Recently, Felix, a direct-to-consumer telehealth company focused on birth control and erectile dysfunction treatments, announced the closing of a $10 million Series A financing round.