During his more than 15 years working in health care, Jim Song learned a lot about the factors contributing to rising costs across the industry for patients and providers.
Song has experience on both sides of the equation. He previously held a leadership role at New York University Langone Medical Center and most recently was a vice president of technology at Blue Cross and Blue Shield of North Carolina.
In July 2022, Song left Blue Cross NC to form his own company, Aphora Health. A year later, he brought on John Roos, another former Blue Cross NC executive, as co-founder. Song set out to build a company that could improve health equity and reduce costs by making global health care accessible to U.S. markets. Aphora, through a growing network of providers, connects people to health care services in other countries at a lower cost than in the U.S.
The company, based in Cary, helps people through every step of the process, which begins with an initial consultation with Aphora. From there, the patient can select a facility and hold a virtual meeting with a surgeon. Aphora takes care of the travel plans and then continues supporting patients after they have returned to the U.S. following surgery.
For its initial launch, the company is offering its services directly to individuals. Aphora is planning to expand its offerings to employers by July, which would mark a critical step for the company.
In the coming months, the company also plans to expand its network of providers from a single hospital in Costa Rica to several additional facilities that the company has visited and vetted. Aphora plans to add dental and pharmacy services to its existing surgical and cosmetic offerings.
This revenue is generated through cost savings that employers will experience from using Aphora's services, Song said. For instance, an average hip joint replacement in the U.S. is about $34,000. In Costa Rica, about 2.5 hour flight from North Carolina, the average cost for the same procedure is around $10,000 to $13,000.
"If you're an employer, you could pay 30 percent less for a surgery," Song said. "Our profit comes from the delta that's left."
While medical tourism is gaining popularity in the U.S., Song doesn't consider Aphora a medical tourism company. Instead, Song wants to introduce a disruptive health care product that can connect people to lower cost services and ultimately lead to broader changes in the industry.
"Hopefully, we make enough of an impact that the health care industry realizes it needs to do something," Song said.
To support its early work, the 10-person company has raised about $925,000 from individual and early-stage investors. Aphora is aiming to reach $2 million for this round in February, followed by a larger Series A raise later next year. The funding will support the company as it ramps up services with Song estimating that by late 2025, the company's revenue will fully cover operations.