Health IT, Startups

Crossover Health raises $15M from Norwest to double employer care centers, staff

Crossover Health a company that sets up and manages on site care centers for employers […]

Crossover Health a company that sets up and manages on site care centers for employers to provide primary care services to employees, has raised $15 million from new investor Norwest Venture Partners. The care centers are seen as one way for employers to reduce healthcare costs and make it easier for staff to see a physician nearby their offices rather than spending time driving to a doctor’s office and sitting around a waiting room for their appointment.

In response to emailed questions Crossover Health CEO Scott Shreeve said the company will use the funds to double the number of new clinics it operates and double its staff.

Although some employers have favored adopting telemedicine as a way to give staff access to some primary care services for non-emergencies and reduce lag time, Shreeve said employers see room for both in-person and remote visits.

“Near-site centers function just like work-site centers do — the only difference is that there are employer multiple sponsors instead of just one. As a result, the scope of service can also be broadened to include services that may not be found in a single employer center. Telemedicine is an excellent solution for a wide variety of primary care issues. However, we believe the in person experience is incredibly valuable to establish relationships as well as provide the comprehensive and integrated set of other services. We think the in person relationship makes telemedicine even more effective. We don’t see it as an “either / or situation”, but rather encourage employers to think about it as an “and” opportunity to offer both… As a design partner for our clients, we help them think through these and other challenges to arrive at the right solution for their unique situation.”

In a blog post on its website, Norwest Venture Partners said the deal marked its first investment in the employer healthcare delivery market. To explain its investment, it cited figures from Mercer’s Worksite Medical Clinics report that 45 percent to 50 percent of employers with 5,000 or more employees either have or are actively looking to build on-site care clinics.

[Photo credit: Money photo from Flickr]

 

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