CAMBRIDGE, Mass. & ALISO VIEJO, Calif.--(BUSINESS WIRE)--Gurnet Point Capital, an investment firm focused on the health care and life sciences sectors, today announced that it has made a $92 million investment in Crossover Health, a next generation provider of employee health care that develops on-site and near-site health centers.
Crossover Health was founded in 2010 to address rising employer health care costs that continue to challenge employers as they strive to provide high-quality, cost-effective health care to their employees. The company’s unique patient engagement and health technology has transformed the model of health care for approximately 50,000 employees of market leading companies throughout the country. Crossover’s Primary Health technology platform promotes interaction with its members, provides them with their health data and encourages an everyday approach to managing their own wellness. The investment by Gurnet Point will increase the capital available for Crossover Health’s expansion as well as redeem a portion of the existing preferred and common shares, resulting in Crossover Health management and Gurnet Point becoming principal shareholders of the company.
“We are thrilled to welcome Gurnet Point as a key investor in our growing business, which will remain focused on providing exceptional health care for employees by delivering efficient, tech-enabled health services that lower the cost and dramatically improve the care experience,” said Dr. Scott Shreeve, CEO and founder of Crossover Health. “The partnership represents a transformative opportunity for Crossover Health to work with even more employers to fundamentally reinvent primary care while being a catalyst for employees to actively engage in their own health and wellness. Gurnet Point’s managing partners have a diverse healthcare expertise and demonstrated successes in long-term value creation for entrepreneurial companies. We look forward to working closely with them as we embark on this next chapter of our growth.”
Christopher Viehbacher, Managing Partner at Gurnet Point Capital, commented, “Crossover Health’s unique care model, which focuses on a compelling patient experience coupled with advanced patient engagement technology, is leading to high employee satisfaction, better health outcomes and lower costs for employers. Many of the adoption problems of other digital health applications have been avoided through developing and refining technology in real world treatment settings. Crossover Health’s approach is exactly the type of disruptive innovation that we believe is best able to meet employee health care needs, both now and in the future. Our investment will provide the necessary capital to enable the company to pursue its long-term strategic goals and expand the very impressive work already being done by the management and extended care teams at Crossover Health.”
In addition to its services to larger companies, Crossover Health has partnered with Willis Towers Watson to rapidly expand near-site health centers aimed at smaller employers or regional offices of large employers who want to realize the cost savings and quality improvements of primary health for their employees but do not have enough employees or real estate for an onsite health center.
As part of its investment, Mr. Viehbacher and Gurnet Point partner George Montgomery will join Crossover Health’s Board of Directors.
About Gurnet Point Capital
Gurnet Point Capital (GPC) is a unique healthcare fund founded by Ernesto Bertarelli and led by Christopher A. Viehbacher, who, together, have decades of expertise in an industry for which they share a passion, both as Chief Executives and as investors. With an initial allocation of $2 billion, GPC is investing long-term capital and supporting entrepreneurs in building a new generation of companies. Based in Cambridge, MA, its remit is global, encompassing life sciences and medical technologies. The fund invests across all stages of product development through to commercialization and does so with an approach that is a hybrid of venture and private equity investing strategies. This approach is governed by a guiding tenet that even the earliest of technologies must present a clear commercial case, benefiting both patients and the healthcare system as a whole. www.gurnetpointcapital.com
About Crossover Health
Crossover Health designs and delivers a unique employee care experience for companies that understand the financial and cultural return of a healthy, motivated workforce. Crossover Health is a medical group and a management service that combines exceptional member experiences with advanced population health capabilities through a comprehensive primary health offering. The company works closely with client partners to optimize the benefit design, customizing health services based on a review of health analytics and then collaborating on the delivery of an inspired patient experience. Crossover Health is behind a transition from outsourced, out-of-control health spending to an insourced, accountable and designed platform of care. This approach enables significant reductions in costs while improving the quality of care by encouraging members to take ownership of their health while achieving their health objectives. Crossover Health is headquartered in Aliso Viejo, California, and currently operates centers in the Bay Area, Austin, San Antonio and Boston, with plans to expand in Southern California, Dallas, Chicago and New York. www.crossoverhealth.com