Accolade Inc. has raised nearly $17 million in equity for its personal health assistance services for large employers, according to a regulatory document.
Accolade works with self-insured companies with more than 30,000 covered employees to help lower health costs. The company assigns a personal health assistant to work one-on-one with an employee to help coordinate care and benefits with an eye toward cost savings.
The company’s $16.9 million fundraise was sourced from 17 investors. Accolade is aiming to pull in $19.7 million, according to the Securities and Exchange Commission filing.
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New York-based MTS Securities will get $750,000 in sales commission and $500,000 is expected to fund payments to executives. CEO Thomas Spann didn’t immediately return a call, so the company’s other plans for the funding are unknown.
The company filed a regulatory document in January saying it had raised $4 million in debt from 15 investors.
Accretive LLC, a New York private equity firm, is Accolade’s top investor.
Accolade gets paid out of savings it generates for clients and only if it “drives satisfaction,” according to Accretive’s website. Accolade doesn’t shift costs to employees or limit their options.
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The company says it can reduce an employer’s health costs by 10 percent and is already producing “exceptional results” for an unidentified Fortune 100 client. Accolade generates savings for clients by “reducing the many process errors that lead to unproductive care,” though specifics of exactly how it does that and what “process errors” it helps overcome are hard to find.
Plymouth Meeting, Pa.-based Accolade was incorporated in 2007.
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