Healthcare platform Carrum Health raised $45 million in Series B funding, which it will use to expand its cancer care offerings, the company announced Tuesday.
San Mateo-based Carrum Health serves self-funded employers and connects their employees to Centers of Excellence, which are specialized programs that provide expertise in certain medical areas. Carrum offers access to services for musculoskeletal conditions, cancer care, cardiovascular care and bariatric care.
The $45 million funding round was led by OMERS Growth Equity and included participation from Revelation Partners, Tiger Global, Wildcat Venture Partners, Cross Creek and SpringRock Ventures. It brings the company’s total financing to about $96 million.
Teresa Lee, managing director of OMERS Growth Equity, is joining Carrum’s board of directors due to the investment.
“With its Centers of Excellence (COE) network, digital platform and data-driven surgical episode bundling capabilities, Carrum Health has created a solution that allows for real-time and measurable value to employers, as well as a superior patient and clinician experience,” Lee said. “The company is well-positioned to transform how healthcare is delivered and paid for, and we look forward to supporting the management team in realizing that vision.”
With the funding, Carrum Health is focusing on two areas, said Sach Jain, CEO of the company. The first is growing its surgical care service lines. The second is expanding its oncology care offering. Carrum launched a pilot program for cancer care in 2021 in partnership with Memorial Sloan Kettering Cancer Center.
“That pilot happened to be very successful, so we have now started expanding the offering to the broad set of employers and cancer institutes in the country,” Jain said in an interview. “That’s a major area of focus for this financing, to rapidly expand our oncology offering.”
When patients start using Carrum’s platform, they begin by registering on Carrum’s app and answering questions about themselves. They are able to select their surgery and are connected to the right surgeon for them. They are also connected to a care specialist, who can answer questions about the process. Carrum helps patients plan their appointments and complete paperwork. Employers cover most — and sometimes all — of the medical costs.
“Patients typically never see any medical bill, let alone any surprise bills,” Jain said.
Employer customers pay Carrum a per member fee to use the solution. The platform has proven to reduce unnecessary procedures by up to 30%, and save up to 45% per care episode, a recent study by the RAND Corporation found. The news comes at a time when cancer and musculoskeletal conditions are the top drivers of healthcare costs for employers.
“Given the current economic environment, the pressure on employers to cut costs is very high,” Jain said. “But the labor market is still very tight, so no employer wants to trim down the benefits and hence what they’re asking is to get the most value out of every single dollar they’re spending on the benefits.”
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