Sunday, October 2, 2022

Turquoise Health scores $20M for price transparency platform



Healthcare price-transparency platform Turquoise Health has raised $20 million in Sequence A funding. The spherical was led by Andreessen Horowitz with participation from Bessemer, Field Group and Tiger International.

WHAT IT DOES

Turquoise affords a platform the place sufferers can search companies and suppliers for price data, evaluate money costs and enter insurance coverage data to seek out out-of-pocket prices. The corporate receives its knowledge from machine-readable information posted by hospitals to remain in compliance with CMS’ Hospital Price Transparency Rule, which went into impact in January 2021. 

The corporate additionally offers compliance instruments for hospitals, service bundling software program, market price knowledge, a pricing API for different firms to make use of of their apps, and a Medicare pricing engine.

Alongside the Sequence A, Turquoise introduced a brand new product, dubbed Clear Contracts. Its objective is to simplify the direct-contracting course of between suppliers and payers. The platform makes use of the corporate’s pricing knowledge and boilerplate contracts, so events can extra rapidly commute on acceptable charges. 

“We’re dedicated to a imaginative and prescient of the brand new ‘pre-revenue cycle’ the place sufferers and payers know the prices upfront and suppliers turn into accustomed to real-time cost for shoppable companies,” cofounder and CEO Chris Severn mentioned in a press release.

“By making a clear, easy-to-use direct contracting platform, Turquoise Health is shifting the business’s focus in the direction of full monetary certainty previous to care finally leading to much less friction between sufferers, suppliers and payers.”

MARKET SNAPSHOT

Many hospitals nonetheless aren’t in full compliance with the federal price transparency guidelines. In line with a February survey from patientrightsadvocate.org, solely 14.3% of 1,000 hospitals had been absolutely following the principles. 

About 38% of the hospitals included within the survey posted sufficient negotiated charges, however greater than half weren’t compliant in different facets of the rule, like charges by every insurer and named plan. These outcomes had been according to earlier studies discovering many hospitals weren’t absolutely compliant.

Different tech-enabled firms that intention to extend price transparency in healthcare embrace CashMD, which launched its cost tool in 2019, and ‘self-pay’ insurtech Sidecar Health, which raised $125 million in Series C funding in January 2021. 

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