The US healthcare system has many virtues, but it is simply too expensive and hard for consumers to access care, according to insiders.
The US healthcare system has many virtues, but it is simply too expensive and hard for consumers to access care, according to insiders. Coastal Americans’ faith in their system has been shaken by the coronavirus and this has created opportunities for some and so Jeff Bennett, CEO of startup Higi, is trying to tackle the issue and has received a fillip with a new round of funding.
UK-based personal healthcare provider Babylon has joined the ranks of new corporate venturers by leading the latest round of US-based consumer health engagement company Higi.
Higi’s previous investors, 7Wire Ventures, Flare Capital Partners, Jumpstart Capital, Rush University Medical Center for Health and William Wrigley Jr, also joined the latest round of undisclosed size. In 2018, Higi raised $25.8m, according to a regulatory filing including from Blue Cross Blue Shield’s Sandbox venturing unit, although Sandbox said it was now no longer an investor.
Higi provides more than 10,000 self-service, smart health stations within five miles of 73% of the US population and after the latest round will now offer a bundled care solution that combines Babylon’s symptom checking and remote digital health tools.
Babylon’s spokeswoman said: “This is our first official US investment, with hopefully more strategic investments and partnerships to help extend our reach in the states to follow.”
Babylon officially launched in the US at the start of the year.
Ali Parsa, CEO and founder of Babylon, said: “Whether it be for chronic conditions, which already place a heavy burden on patients and the healthcare system, to the everyday support of a person’s health and wellbeing, Babylon and Higi’s offerings place greater emphasis on prevention and tackling issues earlier, helping millions of people proactively tend to their health and connect them to the information and medical support they need.”
Personalised support is top of mind for many leaders for as UK Prime Minister Boris Johnson said after hospitalisation for covid-19 and asked how to avoid the disease: “Don’t be a fatty in your fifties.”
And funding is flowing. Digital health companies raked in over $400m last week, according to Rock Health analysis, with the vast majority going to companies enabling virtual care. “Money is following the pursuit toward a telemedicine-forward future…. Telemedicine is here to stay, and some believe its future will be more proactive, personalized, and data-driven.”
