Digital health companies continue to benefit from a surge in investor interest in virtual care.
Case in point: Personal healthcare assistant company Grand Rounds scored a $175 million funding round led by The Carlyle Group.
The company, which launched 2011, got its start with virtually connecting patients with top-ranked medical experts for a second opinion. Grand Rounds has expanded to become a healthcare navigation company and virtual care provider.
The company said it will use the funds to accelerate clinical navigation and virtual primary care.
Grand Rounds uses data and algorithms to match employees with providers and health-related services and is now used by more than 6 million workers at companies such as Walmart, Home Depot, Salesforce, Travelers and other firms.
Grand Rounds currently works with 130 large, self-insured employers.
The company has raised $270 million from investors to date.
Carlyle provided $160 million out of the total new financing, with Grand Rounds valued at $1.34 billion, according to Reuters. Carlyle’s investment in Grand Rounds was made out of the $18.5 billion Carlyle Partners VII.
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"We are at a turning point in American healthcare, a moment when healthcare has become virtual-first and data can be used to dramatically improve outcomes," said Owen Tripp, co-founder and chief executive officer of Grand Rounds in a statement.
"Since our founding, Grand Rounds has helped millions navigate their way through the complex U.S. healthcare system, serving as the personal healthcare assistant to support whole-person care. This financing from a premier investment group with a long history of success in healthcare will deepen our ability to scale and provide the highest quality care and outcomes for our members,” Tripp said.
The company has seen rapid growth this year. It launched several new virtual provider offerings to enable access to care during the COVID-19 pandemic and expanded its relationships with existing customers, according to the company.
Over the past year, Grand Rounds has increased the number of workers using its services by 55%.
Healthcare navigation plays a pivotal role in improving an individual's healthcare journey, at scale, by increasing access to high-quality care while reducing overall costs, according to Robert Schmidt, a principal specializing in healthcare at The Carlyle Group.
Grand Rounds has an "impressive track record of improving patient outcomes," he said.
The company has expanded its capabilities to support members as it relates to clinical, financial and administrative tasks.
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It's urgent response service, launched in April, provides 24/7 crisis response to support employees impacted by COVID-19 and employers navigating the challenges of workplace reopenings.
Grand Rounds also enhanced its premier navigation solution to include telemedicine, becoming the first in the market to go beyond “tele-urgent” care and to transform virtual care into a comprehensive and integrated experience with both clinical navigation and specialty care, according to the company.
The company's telemedicine physicians can see member plan and coverage information and other relevant benefits to create personalized, effective and affordable care plans, which helps to reduce costs and improve outcomes.