boulder careA Portland, Oregon-based telehealth provider specializing in treating and supporting people coping with substance use disorders has raised $36 million in Series B funding.
Founded by Stephanie Strong in 2017, the mission of the company is to reduce the overdose rate in the country, especially for opioid and alcohol use disorders. A White House analysis in 2017 shows that the cost of the opioid epidemic amounted to more than half a billion dollars.
Approximately 92,000 people in the US died of drug overdoses in 2020, including illicit drugs and prescription opioids. Data from the National Institute on Drug Abuse. The number of overdose deaths has risen steadily since the late 1990s, but the 2020 figure is up sharply from just over 70,600 deaths in 2019.
To fulfill its mission, Boulder Care delivers thousands of doses of naloxone, opioid overdose medications to patients, and offers telemedicine support along with medications, including case management, peer coaching, and basic needs support. Boulder is working to connect disparate service providers together across a continuum of services: “Instead of fostering ‘warm transfer’, we never let go of the patient’s hand,” Strong told TechCrunch.
It’s been a hot minute since we contacted the company last profiled around the start of the global pandemic when its opioid treatment gains momentum. At the time, Boulder Care received $10 million in Series A funding led by Tusk Venture Partners.
During that time, the company went from caring for hundreds of patients to thousands of patients, Strong says. And as the industry moves in the direction of increasing value-added potential, it made sense to look for additional funding to accelerate growth.
“Now we are working with dozens of plans and want to meet the needs that are required,” she added. “We also plan to methodically enter into partnerships and create new states.”
Series B sponsors include Qiming Venture Partners (USA), Goodwater Capital, Laerdal Million Lives Fund and existing investors First Round Capital, Greycroft, Tusk Venture Partners and Gaingels. The new investment gives the company more than $50 million in total investment.
Since 2017, the company has seen a 100% year-over-year client turnover, with 70% of its patients staying in the program for 12 months. Strong also claims a one-month customer retention rate of 90%, three times the industry average.
It also partnered with 20 corporate clients, providing millions of people across the country with access to the company’s services through health insurance plans and employers including Regence, Anthem, Comcast and Hewlett Packard through ComPsych EAP.
In the 2 years since Series A, Boulder Care has also experienced impressive growth, serving several thousand patients with opioid and alcohol use disorders and increasing its revenue more than 10-fold.
Most of its income comes from in-network reimbursement under managed Medicaid arrangements, which cover low-income members with complex needs. This means that most Boulder Care patients pay nothing out of their own pocket to be part of the program.
With this funding, Strong expects to triple the size of Boulder Care’s medical group, expand and deepen its presence in multiple markets, and implement payer contracts that hold the company accountable for clinical and non-clinical outcomes.
The company is not alone in using technology to address the problem of substance abuse. Others have also raised venture capital in the last couple of years – for example, Trackthat offers care as part of employee benefits; Make an impacton methamphetamine abuse; as well as Monument as well as storm, both are directed towards alcoholism.
Strong says what sets Boulder Care apart from some of its competitors is the number of health plan contracts it has and that most of its patients pay nothing for the program, or perhaps a $4 copay. , compared to others offering monthly subscription rates that are priced at people who can’t afford to maintain this long term.
Next, the company will focus on growing into new fortunes “thoughtfully,” Strong said. As it enters new states, the company seeks to build relationships with local and state programs to fill healthcare gaps with telehealth. He is also working with regulators on what telemedicine might look like as substance abuse treatment evolves.
Credit: techcrunch.com /