A New York state firm that’s partnering with the Business Health Care Group of metro Milwaukee in using data they predict can simultaneously improve care and reduce costs raised $51 million in capital to support rapid growth and expansion of the firm’s tech-enabled health care products.
Buffalo, New York-based Centivo said its products will be available in half of the top 20 American markets — not to mention metro Milwaukee — by the end of this year.
Business Health Care Group, which is based in Waukesha, is in the midst of pitching a new package of health care networks to eastern Wisconsin employers for the 2022 plan year. The new plans reward health care providers for quality and cost efficiency in what is called a high-performance health plan and promise employers discounts from current costs, depending on the narrowness of the health care provider networks employers choose.
The Business Health Care Group is a coalition that includes some of southeast Wisconsin’s largest employers that strives to stem increases in employer health care costs.
Centivo revealed this summer that Buffalo would become its formal headquarters. The health-tech startup's latest fundraise is one of the biggest rounds of venture capital in the region’s history.
By using data and partnering directly with companies, Centivo leaders believe they can simultaneously improve care and reduce costs.
“In this era of COVID and challenging talent attraction and retention dynamics in the workforce, it gives us tremendous pride to help employers offer their employees 1980s levels of healthcare affordability while also saving their companies money,” Centivo founder and CEO Ashok Subramanian said.
Centivo has now raised $118 million in venture capital since it was founded by Subramanian in 2017.
Centivo’s round was led by B Capital Group and Maverick. Existing investors Bain Capital Ventures, Company Ventures, Define Ventures, F-Prime Capital, HarbourVest Partners, Ingleside Investors, Nassau Street Ventures also participated, along with various individual investors.
