A month after changing its name from CMT Solutions to careviso, the Falls Church health-tech company has raised $17.4 million in new funding and plans to use the proceeds to add new services and broaden physicians’ and health plans’ access to its tech platform.
The company, which primarily provides technology to help doctors secure insurance coverage for lab tests, said Wednesday that Ballast Point Ventures of Tampa, Florida, led the Series B round and that two existing investors, Houston venture capital firm Mercury and New York’s Lytical Ventures, also participated.
The capital infusion more than doubles the $16.7 million careviso raised in earlier funding rounds in March 2021 and April 2019, and positions the company to “pivot towards a broader part of the diagnostic testing process to solve the growing challenges for patients – reducing complexity and providing a clear picture of costs,” Andrew Mignatti, its co-founder and CEO, said in a statement Wednesday.
Historically, careviso has worked to get health plans to approve coverage of diagnostics, and recently added a new service verifying insurance status and providing cost data around tests and services.
The company’s tech platform, called seeQer, pulls benefits information and pricing data from health plans, providers and facilities. The goal, Mignatti told us in August, is to lighten physicians’ administrative burden while giving patients a better sense of what a test or procedure will cost. In doing so, according to the company, it also aims to satisfy the No Surprises Act, which went into effect in January to eliminate surprise medical bills for certain types of care.
Up to this point, careviso has been focused on two therapeutic areas: oncology, and obstetrics and gynecology — with more than half of U.S. OB-GYN clinics using its platform. But the company said it’s now looking to deliver its financial transparency tool to more areas, starting with radiology and endoscopy. It’s also laying groundwork to work directly with health plans, Mignatti told us previously.
The business is also putting some of the dollars toward hiring, in the face of what Mignatti recently described as “rapidly increasing” demand and month-over-month growth. Specifically, that involves adding to its engineering and clinical teams to support its expansion into new areas, the company told us Wednesday. It now has more than 140 employees, up from 30 in spring 2019.
The raise comes less than two months after the company rebranded from CMT Solutions to careviso, a blend of the words “care” and “vision” to reflect its evolution beyond just prior authorizations. It was the second name change for the company, which debuted five years ago as CoverMyTest, then changed its name to CMT Solutions within a couple of years.
Since launching in 2017, the company reports serving more than 1 million patients and 120,000 doctors. It has existing contracts with more than 40 labs, including industry leaders Quest Diagnostics Inc. and LabCorp.
Careviso was formerly part of Inova Health System’s now-defunct accelerator. It previously moved its headquarters from Cabin John to its current 3,200-square-foot base on Leesburg Pike and also has an operations hub in Orlando, Florida.
Mignatti, who has experience running laboratories, founded the company with Chief Business Officer Perry Dimas. They set out to fill a hole in the marketplace, as insurance companies increasingly required prior authorizations from labs and doctors to process and pay for lab testing, particularly as molecular diagnostics became more prevalent in women’s health and cancer care.
