Oak Street Health Acquires Telehealth Company RubiconMD for $130 Million

Oshi Health, a virtual clinic focused on gastrointestinal conditions, Raised $23 million in a Series A funding round.

Flare Capital Partners, Bessemer Venture Partners, and Frist Cressey Ventures co-led the round, with CVS Health Ventures, Takeda Digital Ventures, and individual investors, including athenahealth co-founder Jonathan Bush and Headspace Health CEO Russell Glass.

The company plans to use the new funds to scale its virtual-first care delivery platform that integrates medication, nutrition, and mental health support in a data-driven care model.

“Stigmatized GI conditions affect tens of millions of people, causing unnecessary suffering and billions of dollars in avoidable spending,” said Oshi Health CEO Sam Holliday.

“We have completely redesigned GI care delivery with our integrated, virtual-first model to address two core tenets: increasing access to the care that solves the patients’ needs and lowering the total cost of care for patients and purchasers. We are thrilled to join forces with this stellar group of healthcare investors to aggressively scale delivery of our life-changing, value-based care.”

Oshi Health initially launched an app in 2018 to help people with inflammatory bowel disease manage their condition. The company works with innovative employers and health insurance partners to scale access to their employees and members as a covered benefit.

“One of the largest cost drivers in healthcare is spend associated with gastrointestinal disorders. It manifests through specialty drug spend, repeated ER visits, unnecessary scopes, and lower workplace productivity and impairment. As a result, health plans and employers are starting to look for care options,” said Steve Kraus, partner, Bessemer Venture Partners.

“Oshi Health offers an integrative model to support GI patients across every step of their journey, whereas before, it was such a disparate and dissatisfying experience.”

Telehealth companies raised a record $5 billion in 1H 2021, a 150% increase year-over-year compared to $2 billion raised in 1H 2020, according to the recently released Mercom’s 1H 2021 Digital Health Funding and M&A Report. mfine, an AI-enabled telemedicine app that provides instant healthcare services, raised $48 million in a Series C funding round co-led by Moore Strategic Ventures and BEENEXT.