June 24, 2014
CoPatient Receives Funding to Fight Rising Healthcare Bills for Consumers
Technology-enabled-service identifies billing errors and connects patients with expert advocates
BOSTON, June 24, 2014 /PRNewswire/ -- CoPatient, Inc. announced today the completion of a $3.6 million round of Series A financing to fuel the company's growth as consumers' trusted healthcare spending advisor. The financing round was led by .406 Ventures. Returning investors included Jonathan Bush, CEO of athenahealth, and Cambia Health Solutions.
CoPatient offers a free medical bill review to enable consumers to understand and reduce their rising out-of-pocket expenses, which currently top $320 billion annually. The company's technology platform pairs patients with medical billing experts who comb through bills spotting errors. "We are reducing friction and waste in the system for consumers, employers and healthcare providers," said Katie Vahle, Co-Founder of CoPatient. "Rather than sending consumers to collections, hospitals and doctors can resolve outstanding issues quickly and appropriately when consumers work with CoPatient." CoPatient saves consumers an average of 40% when billing errors are identified.
"CoPatient is perfectly positioned to be the leader in helping employers, their beneficiaries and consumers navigate healthcare spending more effectively," said Liam Donohue, Co-Founder and General Partner of .406 Ventures.
By engaging individuals directly, CoPatient is tackling the next frontier in managing rising healthcare costs through service delivery verification and billing authentication. This combination of firsthand consumer input with data pattern identification uncovers broader issues in claim adjudication, exposes unfavorable provider pricing and addresses inappropriate billing. This results in direct savings for employers, individuals and plan sponsors. The company has reviewed millions of dollars in charges and identifies potential savings for consumers in 80% of cases.
Employers and organizations such as AARP are partnering with CoPatient to help their members manage medical spending. In speaking about the partnership with CoPatient, Jody Holtzman, Senior Vice President of Thought Leadership at AARP said "As healthcare has become increasingly expensive and complex in this country, we've continued to seek out services for our members to save them money and reduce the stress of healthcare billing."
"We are very excited about the growth that .406 Ventures' support will allow us to achieve in reaching employers and consumers with our solution to the complexity and expense of healthcare" said Rebecca Palm, Co-Founder of CoPatient, Inc.
CoPatient is addressing the confusion and resolving the inconveniences employers and consumers experience when paying for healthcare expenses. The company provides a free analysis of any unpaid medical bill then offers free or paid options to resolve any billing issues identified as covered by ABC World News with Diane Sawyer (http://www.copatient.com/abcnews-realmoney/). For more information, please visit www.copatient.com.
About .406 Ventures
About .406 Ventures: .406 Ventures is an early-stage venture capital firm that invests in innovative information technology and services companies founded by the finest entrepreneurs. .406 Ventures is led by a veteran team of industry entrepreneurs, operators and investors who apply real-world experience, deep industry knowledge and networks, and strong company-building skills to create value for entrepreneurs and investing partners. .406 Ventures is typically the lead, first institutional investor, in early-stage and de novo investments in market-changing IT security and infrastructure, with a particular focus on healthcare IT, Big Data, cloud and mobile software companies.
About Cambia Health Solutions
Cambia Health Solutions is a nonprofit total health solutions company based in the Pacific Northwest/Intermountain region, serving consumers and communities for nearly 100 years. Cambia companies provide a wide range of products and services, including health care information technology and software development, retail health care, health insurance, life insurance, pharmacy benefit management, consumer engagement and wellness. For more information, please visit cambiahealth.com.
Contact: Rebecca Palm, 888-702-2330