Pearl Health, a New York-based health technology company focused on assisting providers in managing risks for Medicare patients, announced Wednesday that it has raised $110 million in funding.
The company facilitates value-based care by offering predictive AI insights, financial risk modeling, and more efficient workflows. Its platform aids in identifying at-risk patients, enabling providers to intervene earlier, while also automating administrative processes such as scheduling and post-discharge follow-ups.
The funding round comprises a $50 million equity investment led by Andreessen Horowitz, with participation from Viking Global Investors, AlleyCorp, and Ulysses Capital, alongside a $60 million credit facility led by Trinity Capital.
“Pearl has demonstrated that risk management across large patient populations in various care settings can improve patient outcomes, generate significant savings, and support a sustainable business model at scale,” stated Vineeta Agarwala, MD, a general partner at Andreessen Horowitz, in a press release. “Pearl’s ability to enable providers to successfully engage in value-based payment programs—through technology rather than by expanding clinical staff—reflects both the vision and execution of the Pearl team.”
The new funding will allow Pearl to expand its AI platform, continue developing new partnerships between healthcare systems and payers, and grow its presence within Medicare Advantage.
Pearl Health currently supports over 10,000 providers across 40 states, serving more than 250,000 Medicare beneficiaries. The company manages approximately $3.6 billion in annual medical spending, an increase from $2.4 billion in the previous year. It aims to generate $500 million in gross savings and triple its patient base from 2024 to the end of 2026.
With more than 70 million individuals covered by Medicare and system costs exceeding $1 trillion, Pearl seeks to cut costs by assisting providers in linking reimbursement to outcomes instead of volume.
“Pearl was founded on a simple belief: healthcare should reward keeping people healthy, not just treating them when they are sick,” stated Michael Kopko, co-founder and CEO of Pearl Health, in a statement. “Unnecessary costs and poor outcomes persist in the U.S. healthcare sector because most providers lack the capabilities to shift entirely to outcome-based care. With this funding, we are investing in accelerated innovation and growth to expand our impact across the healthcare system.”
Other companies aiding providers in transitioning to value-based care include Aledade and Astrana Health.
Photo: Richard Drury, Getty Images
