Employer Direct Healthcare announces $92m investment from Insight Partners, now valued at $1b

Employer Direct Healthcare (EDH), a specialty healthcare network solution, announced a $92 million secondary investment from global software investor Insight Partners, bringing the company's valuation to $1 billion. EDH's existing institutional investors, Serent Capital, Redmile Group and Dundon Capital, will maintain their ownership interest in the business. 

EDH has quietly grown to become one of the largest participants in the specialty networks, centers of excellence, and bundled payments categories for employers who self-fund healthcare coverage for their employees. Currently, EDH serves hundreds of self-funded plan sponsors across 1000+ employers (including approximately two dozen Fortune 500 employers and three dozen public sector entities), representing over 4 million people across the U.S. The EDH network includes more than 3,000 surgeons and oncologists and over 500 facility partners, spanning 157 metropolitan regions across the country – all of whom have gone through a rigorous selection process designed by EDH's medical advisory board.

John Zutter, CEO, EDH: "For too many Americans -  even those with insurance – the financial and logistical burdens of a cancer diagnosis or need for surgery can be earth shattering. Every day, EDH is serving people at their most vulnerable – guiding members to high-quality providers that are close to home, at little or no cost to them. We're grateful for Insight Partners' significant vote of confidence as we continue to deliver excellent, affordable, and accessible specialty care for more communities. Further, this investment provides an attractive outcome for some of our earliest backers, including TEXO Ventures, while bringing Insight's world-class capabilities to bear for the future of the business." 

Over the past 12 years, EDH has facilitated more than 43,000 surgical journeys, significantly reducing members' financial burdens by an average of $4,000. While doing so, EDH has lowered overall healthcare costs for employer clients by a total of ~$700 million since inception and will reduce overall healthcare costs for clients by approximately 2% in 2023.

Scott Barclay, Managing Director, Insight Partners: "EDH represents the next generation of value-driven healthcare, attacking the largest sources of spend for U.S. employers – surgery and cancer – with a laser focus on quality and cost for clients and their employees. EDH is a rare example of the right management team, the right model, and the right technology to truly change the outcomes and business of healthcare." 

Matt Harmon, VP of Compensation, Benefits and HRIS, Customer Satisfaction, AutoZone: "Partnering with EDH has yielded very positive outcomes for our AutoZoners and they often share with us their wonderful experiences with SurgeryPlus. EDH helps to ensure that we're able to provide access to high-quality, affordable surgical care for our AutoZoners across the U.S.."

In the coming year, EDH will continue to build on market momentum and strong overall growth, including expansion of Cancer Care Direct, the industry's first end-to-end oncology solution, and several key partnerships with national health plans, navigators, and other industry-leading employer solutions.

www.edhc.com