CVS and BCBS Venture Fund Workit Health’s $ 118 Million Funding Round to Expand Virtual Addiction Treatment Platform
Startups that tackle substance use disorders, many of which use virtual care platforms, are grabbing investor attention and providing significant cash to grow their businesses.
Ann Arbor, Michigan Health at work, a virtual drug and alcohol treatment clinic, is the latest startup to raise significant funds. The startup took home $ 118 million, led by New York-based global private equity and venture capital firm Insight Partners with participation from CVS Health Ventures, FirstMark Capital, BCBS Venture Fund and 3L Capital.
The new capital will allow Workit to expand into new regions this year and next, with plans to be national by 2023.
The investment comes following increased demand for telemedicine options during the COVID-19 pandemic, leading to a 400% increase in Workit Health membership in the past 18 months, the company said in A press release.
Workit Health plans to use the funding to accelerate its growth in new markets as well as expand its primary and psychiatric care offerings, bringing effective care for substance use and related conditions to people in the privacy of their own homes. .
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âWorkit is at the forefront of massively accelerating the uptake of telemedicine, which is critical to addressing the overdose crisis that has been exacerbated by COVID-19. The risk factors associated with substance use have increased dramatically, âLisa McLaughlin, co-CEO of Workit Health, said in a statement. âThis latest round of funding helps us expand our relationship-based, telehealth and value-based approach into new areas that are in desperate need of simple and reliable solutions like Workit.â
McLaughlin and Robin McIntosh co-founded the company in 2015 after their own experiences with broken treatment systems. Workit improves outcomes for substance use disorders and concurrent conditions, enabling people to receive evidence-based clinical care, including drugs for substance use and mental health, as soon as they are found. ready, via the Workit app, according to the company.
âWorkit Health’s evidence-based virtual offering is transforming the way substance use and mental health care is delivered to people with many forms of addiction,â said Josh Flum, Chief Strategy and Development Officer sales representative at CVS Health, in a press release. âBuilding on our existing relationship, this investment in Workit Health once again demonstrates CVS Health’s commitment to making healthcare more affordable, accessible and simpler.
Company data shows 84% ââof Workit members stay in the program longer than 30 days, compared to an industry average of 33% of patients who take traditional treatment in the first month. And 41% of Workit members receive treatment for more than a year.
Workit members report a reduction in addictive behaviors as well as a decrease in anxiety as well as an increase in healthy habits like exercise and controlled spending.
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âWe are establishing a new model of addiction care in America and are proud to work with partners at the forefront of high growth healthcare and technology,â said McIntosh, who is co-CEO, in a communicated. âWe lost a record 90,000 people to overdose deaths last year due to an outdated treatment system. Thousands of inpatient programs have been closed, leaving patients nationwide stranded and denied access to care. With Workit, starting the recovery journey is as easy as downloading an app. Our ultimate goal is to democratize access to drug addiction care for all who want it.
Virtual rehabilitation is on the rise, driven in part by the switch to telehealth during the pandemic. Groups Recover Together, a provider of drug-assisted treatment for opioid addiction with a portfolio of clinics operating in 12 states, raised $ 60 million in Series C funding in May, backed by Oak HC / FT, Bessemer Venture Partners , Transformation Capital, RRE Ventures, Optum Ventures and Kaiser Permanente Ventures.
Quit Genius recently raised $ 64 million for his treatment of addiction through telehealth. The company says its revenue has grown tenfold in the past 12 months and now partners with 55 employers and health plan clients, covering 2.1 million lives.
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Another startup, Ophelia, uses telemedicine to provide treatment and raised $ 15 million in fresh capital in April; Bicycle Health, a virtual care platform for opioid use disorders, secured $ 27 million in funding in June.
Wayspring too just returned a $ 75 million funding round that included support from major payers such as Centene Corporation, Highmark and the Blue Venture Fund.
According to CrunchbaseThere are 21 upstarts in the addiction space, mostly seed or early stages, which have been round high over the past two years.
Workit Health offers telemedicine and electronic prescription drug visits to a local pharmacy, as well as online recovery groups, an interactive therapy program, and direct messaging with a care team. In 2021, Workit Health’s offerings expanded to include primary care for common physical conditions such as hepatitis C and PrEP, and psychiatric care, including depression, anxiety, insomnia and ADHD. .
The company offers licensed clinical support for substance use disorders and related conditions in ten states and also offers a nationwide coaching and counseling program.