Hospitals

Iora Health raises $75M Series D round for expansion across western states

Iora plans to use some of the funding to add practices in western states such as Arizona, Colorado and Washington state.

 

 

money

Iora Health has closed a $75 million Series D round to expand its foothold in western states.

The Boston-based company, co-founded by Rushika Fernandopulle, who was previously a physician at Massachusetts General, runs primary care facilities that use an outcomes-based care model (as opposed to fee-for-service). They use sponsors such as New England Carpenters Benefits Fund, Tufts Health, and Dartmouth College, that pay a flat monthly fee for each patient. Iora also uses health coaches to help patients navigate insurance decisions.

Temasek, based in Singapore, led the investment round, but there was also participation from .406 Ventures, Flare Capital Partners, F-Prime Capital, GE Ventures, Khosla Ventures, Polaris Partners, and Rice Management Company, according to the news release.

Temasek is an interesting backer because the state investment business has few healthcare investments, based on a quick glance over its website. It recently hired Goldman Sacks veteran John Vaske to head up its North American operations. A spokeswoman for Iora said the global investor is very interested in issues facing the U.S., and the world overall.

“Increasingly, the same problems facing the U.S. are spreading to other markets, so we do think there are opportunities internationally,” the spokeswoman said.
“But Temasek invests in other US-based companies on the basis of the U.S. opportunity itself.”

Iora dates back to 2010 and began opening practices in 2012. Although a spokeswoman acknowledged that the business is not yet profitable, she added that there have been pockets of profitability across its more mature practices.

The company announced five new practices this week, all with Humana, in Phoenix, Denver, and Seattle. Iora also plans to allocate funding for its Chirp platform, as well as new jobs, but it declined to specify how many staff it planned to add.

Photo: Flickr user We Love Costa Rica

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