Today, Crossover Health is announcing a $168M Series D financing led by Deerfield Management with participation from an amazing syndicate which included Perceptive Advisors, OrbiMed, Foresite Capital, Avidity Partners, Liberty Advisors Group, Irving Investors, and Partner Fund. I could not be more thrilled to welcome our new investor partners and am grateful for their confidence in our vision of healthcare as it should be. I am also thankful for our partners at Gurnett Point Capital, who four years ago saw what was possible, and who have helped us navigate our growth as we achieved our original milestone goals of $100M in revenue and a triple comma valuation. This is not only an awesome affirmation of what we are doing, but it is a serious responsibility to continue to execute.
We have always had a clear and compelling view of how care delivery needed to change (basically everything). We started with a different payment model (skipping traditional insurance), used a different care model (member-centric, team-focused, and relationship-based), and have created an entirely new engagement model (proactive care, Be Well services, and targeted health programming) in an effort to achieve outsized results in the Triple Aim of cost, quality, and experience. We have made incredible progress over the last 10 years, and this new investment is intended to add the rocketfuel for the next stage of the mission.
This announcement will get lost quickly in the 24-hour news cycle and frothy churn of the next new virtual app, digital health, AI-powered transparency tool, and some SPAC-sponsored amalgamation of companies and assets thrown together to capture the current zeitgeist. While I love the innovation and welcome every incremental effort to improve the health and care in our country, I want to also push back on care models with no business model, hype with no hope for impact, and all the noise that nonsensically creates more distance between the provider and the member. Pure technology plays in healthcare always have hopes for efficiency gains, but the needle on cost and health outcomes really only moves over the long term, when individuals embrace health, and healthy behaviors as an enduring lifestyle choice. To be effective, it really requires a trusted partnership with a team, not simply an app or digital service. We think there should be more emphasis on “touching” the patient—with technologies deployed in ways that actually accentuate our humanness and our humanity.
Crossover’s goal is to “mainline” care as it should be; so we go right to the heart of health—a trusted relationship with your Primary Health team. We are staking out this vacated ground because this is where the magic happens—a human-to-human connection combined with a cause to make simultaneous improvements in cost, quality, and experience. This does NOT have to happen in person, but it does need to happen “in kind”. We think this is the critical long game to be played, and we plan to continue bringing convention-defying innovation combined with a remarkable culture of health, a business model that will endure for more decades, and a company that can continue to thrive at scale. Our impressive list of hard won client partners is the ultimate testament of the enduring success and future potential of this approach.
We have flown under the radar for a decade, because our focus has been on building the care model, not on enhancing our industry profile. This funding announcement will put us squarely on the map— and we are ready to compete in the rapidly evolving care delivery and membership health world. This means “entering the arena” with even higher stakes, but with the chance for even greater outcomes. We’ll use these new funds to continue to grow the depth and breadth of our offering, notably into the realm of services that underpin healthy living. We’ll invest further in our underlying technologies to enhance not only our data analytics capabilities but also the digital familiarity that allows our teams to build trusted relationships at a distance and at scale. And we will continue to build the strength of our team, as we expand our Connected System of Health across the nation.
And for this, I am particularly happy for our entire team. We often repeat, and we deeply mean it when we say, “our people are our product.” I am so proud of every single person who has worked tirelessly, fought through every obstacle, proudly contributed to our culture, and helped produce the XO Magic that has become such an incredible part of that Inevitable spirit. I have a tremendous leadership team that I get to work with each day. They push me to be better, help me think differently, and help lift the company so much higher, propelling it further than I could alone. For our Medical Group and our Management Services team members, I have so much respect for what you do every day and every way. I am proud to watch you shine that light higher and brighter in your work.
And finally, to all of our clients and members who actually use our services—I wish you could see all the blood, sweat, and tears that become part of the alchemy as we craft your every single interaction with us. The effort, the debates, the back and forths, the late nights, the long weekends, and the ups and downs are all worth it when we have the privilege of getting things right and having an impact in your life. We really do live, work, and serve our mission, so that we can be ready to make a difference each and every time we connect with you.
What once seemed impossible, becomes improbable, and ultimately—inevitable!