One of Nashville’s fastest-growing health care companies has new growth capital.
Wellvana Health has closed an $84 million round of funding, according to a news release, led by Nashville-based Heritage Group and Valtuis, with participation from Texas-based not-for-profit health system Memorial Hermann Health System.
The Business Journal first reported Wellvana was raising a new round of capital earlier this month, when the startup filed $64.5 million in new funding with the U.S. Securities and Exchange Commission.
The new raise brings Wellvana’s total funding since November 2020 to $140 million, according to the release. Previous rounds where led by Nashville-based Martin Ventures, with participation from First Trust Capital Partners and Rubicon Founders founder Adam Boehler.
Founded in 2019, Wellvana works with independent physicians, home health firms, skilled nursing facilities and health systems to reduce operating costs and improve patient care using value-based care models. These models offer financial incentives to physicians, health systems and other providers based on quality of care.
The company is currently operating in 22 states, according to the release, with more than 100,000 Medicare and commercial patients. The new funds will be used to fuel growth in existing and new markets.
“Wellvana exists to help doctors deliver life-changing health care to their patients,” Wellvana CEO Kyle Wailes said in the release “We are taking a differentiated value-based care approach that only succeeds when two things align: data-driven technology and high-touch human engagement. Our model is working; savings rates are strong for our physician partners with improved patient outcomes and reduced in-patient ER admissions across every market. Most importantly, our physicians and their patients feel heard, seen and valued, renewing trust in the American health care system.”
The raise, which included 13 investors, is the latest major cash influx into a Nashville value-based care startup during a period in which large rounds of funding have been rare. Last year, value-based senior care startup CareBridge closed a $140 million round of funding, led by Oak HC/FT, at a $1 billion valuation. That was followed by value-based kidney care startup Monogram Health, which closed a $375 million round of funding in January.
