DENVER, CO--(Marketwired - Aug 18, 2016) - NextHealth Technologies Inc., a prescriptive analytics and consumer engagement platform, announced it has completed a Series A round of funding led by Norwest Venture Partners, with participation from existing investors. NextHealth will use the funding to grow its engineering talent and deliver system enhancements to the millions of members and myriad of health plans that now use the NextHealth enterprise platform.
Challenging industry dynamics and the Affordable Care Act are pushing health plans to seek solutions that can lower medical costs, direct members to more efficient care settings, and improve the health of plan members. NextHealth's enterprise platform identifies and targets high-cost plan members, prescribes and delivers member-level actions or "nudges," then measures and optimizes outcomes. The scalable system supports over 30 use cases, including reduction of out-of-network provider usage, retention of high-value members, and reduction of avoidable emergency room visits -- itself a $38B annual cost in the United States.
"With annual healthcare spending projected to surpass $16K per person in the U.S. by 2025, it has never been more important to provide consumers with the tools they need to make informed medical decisions," said Casper de Clercq, General Partner at Norwest Venture Partners. "NextHealth's solution dramatically cuts costs for Medicaid, large-group and commercial markets by deriving insights and more importantly, driving action, through an integrated analytics and consumer engagement platform."
"NextHealth has established its value at a time of fundamental change in healthcare, delivering much-needed and proven $12 per member per month medical costs savings," said Eric Grossman, CEO of NextHealth Technologies. "Our causal medical savings are critical to insurers given the considerable exchange losses they've sustained in the wake of the Affordable Care Act. Importantly, we're aligned with our customers by putting our fees at risk based on a percentage of net paid-claims savings."
NextHealth has recently been named in three Gartner industry reports: "Hype Cycle for U.S. Healthcare Payers, 2016"i (in the Retail Analytics for Healthcare Payers category), "Hype Cycle for Healthcare Providers, 2016"ii and "Hype Cycle for Consumer Engagement with Health and Wellness, 2016"iii (in the Healthcare Consumer Persuasion Analytics category).
About NextHealth Technologies
NextHealth Technologies (NHT), based in Denver, is a prescriptive analytics and consumer engagement company that measurably reduces medical costs. NextHealth's SaaS platform integrates prescriptive analytics, behavioral economics and multichannel consumer engagement. The platform predicts risk-reduction opportunities and prescribes "nudges" to dramatically improve and optimize outcomes. NHT has succeeded in delivering a groundbreaking and sustained 25% reduction in ER visits and savings of over $12 per member per month in medical claims costs among targeted Medicaid and commercial populations. Use cases include ER visit reduction, out-of-network reduction and member retention. NextHealth offers an at-risk managed services contract based on outcomes. For more information, visit http://www.nexthealthtechnologies.com. Follow NHT on Twitter @nexthealthtech.
About Norwest Venture Partners
Norwest Venture Partners is a global venture capital and growth equity investment firm that manages more than $6 billion in capital. The firm targets early to late stage venture and growth equity investments across a wide range of sectors including: technology, information services, business services, financial services, consumer products/services and healthcare. Headquartered in Palo Alto, Calif., Norwest has offices in San Francisco and New York, and subsidiaries in Mumbai and Bengaluru, India and Herzelia, Israel. The firm has funded more than 575 companies since inception. For more information, please visit http://www.nvp.com. Follow Norwest on Twitter @NorwestVP.
i Gartner "Hype Cycle for U.S. Healthcare Payers, 2016" by Robert H. Booz, Constance Sjoquist, Jeff Cribbs, July 1, 2016.
ii Gartner "Hype Cycle for Healthcare Providers, 2016" by Vi Shaffer, Laura Craft, July 14, 2016.
iii Gartner "Hype Cycle for Consumer Engagement With Healthcare and Wellness, 2016" by Jeff Cribbs, Richard Gibson, M.D., July 13, 2016.
Contact Information:
For media inquiries:
NextHealth Technologies
Melissa O'Connor
VP, Marketing
moconnor@nexthealthtechnologies.com
Norwest Venture Partners
Kate Chesnut
Marketing Manager
kchesnut@nvp.com