Crossover Health Raises $168 Million to Grow Primary-Health Services

April 1, 2021
Crossover Health logo

Company provides healthcare services for self-insured employers, health plans

Crossover Health has raised $168 million from investors to expand a new model of providing primary-care and other healthcare services to self-insured employers and health plans.

San Clemente, Calif.-based Crossover provides primary-care, mental-health care, health coaching and other services. The company says it provides virtual care as well as in-person care through health centers located on or near employer campuses or in neighborhoods where eligible members and their families live.

“This company has identified ways to meet healthcare consumers where they are,” said Adam Grossman, a partner with healthcare investor Deerfield Management Co., which led this new round of financing.

A number of companies in recent years have raised venture capital to develop new primary-care offerings that provide services not always offered through conventional models. Last year, 1Life Healthcare Inc., better known as One Medical, went public and after raising venture capital from investors such as GV. One Medical provides benefits such as same-day in-person visits as well as virtual care. Another, Iora Health Inc., which raised a $126 million financing last year, uses health coaches in addition to doctors to help patients get and stay healthy.

Christopher Viehbacher, managing partner of Crossover Health investor Gurnet Point Capital, and former chief executive officer of pharmaceutical company Sanofi SA, said he was drawn to Crossover’s holistic model of providing healthcare services and that he sees it as a model for the future.

Crossover Health also provides patients with access to care navigators, or professionals who help people locate specialist care, such as cardiologists, said founder and CEO Scott Shreeve.

Crossover Health plans to use this Series D round of financing to expand in several ways. The company, for example, intends to expand its digital capabilities, publish additional studies in peer-reviewed journals pertaining to its healthcare model, and add to its sales and marketing efforts, Dr. Shreeve said.

“We want to show over and over again [that] this model is different,” Dr. Shreeve said.

In addition to Deerfield, new investors in this round included Perceptive Advisors, OrbiMed Advisors, Foresite Capital, Avidity Partners, Irving Investors, PFM Health Sciences and SharesPost 100 Fund. Crossover Health has raised a total of $282 million since forming in 2010.

Crossover Health Raises $168 Million to Grow Primary-Health Services (