Telemedicine, Hospitals

Telehealth platform provider eVisit raises $45M

The company, which helps health systems operate virtual care programs through its platform, will use the new funds to scale its go-to-market efforts, invest in the development of new capabilities and hire new employees.

Virtual care platform provider eVisit has raised $45 million in a Series B financing round led by Goldman Sachs Asset Management.

Texas Health Resources and Health Catalyst Co-founders Tom Burton and Steve Barlow participated in the round.

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Mesa, Arizona-based eVisit provides health systems with a virtual care platform that they can use to offer telehealth and other remote care services. The company helps its customers operate telehealth programs to “drive health equity, improve patient outcomes and population health, drive clinical operational efficiencies and reduce healthcare costs,” said Bret Larsen, co-founder and CEO of eVisit, in an email.

The eVisit platform was created to enable brick-and-mortar health systems to compete with direct-to-consumer telehealth providers, like Teladoc Health and Hims & Hers, who deliver episodic care to people, he explained.

Founded in 2015, eVisit has raised a total of $75 million so far. Its current customers include Banner Health, Texas Health Resources and Concentra.

The company will use the newly raised funds to scale its go-to-market efforts and further invest in the eVisit platform and capabilities.

“This funding support will be leveraged to advance our platform and to accelerate the development of a crafted consumer experience with triage and care navigation for patients and providers to ensure the right modality of care for patient needs — whether that’s in-person, chat-based asynchronous or real-time synchronous virtual care,” Larsen said.

Further, the company will hire new team members for its sales, marketing, product development and engineering teams, among others.

“By the end of 2021, we expect our associate base to grow by nearly 100 people,” Larsen said.

Telehealth use accelerated amid the Covid-19 pandemic, and though it has dropped from its highest point in April 2020, usage levels are still much higher than before the public health crisis.

As a result, the telehealth market is booming, with revenue expected to grow at a compound annual growth rate of over 28% between 2020 and 2026.

The market is crowded and eVisit faces fierce competition from companies like Amwell, CirrusMD and the aforementioned Teladoc Health.

But, as healthcare organizations map out their long-term virtual care plans, Larsen believes they are recognizing the need for an end-to-end solution, like the eVisit platform, that brings the entire clinical workflow into the virtual landscape, from scheduling to the patient visit to discharge and payment.

“A top lesson learned among healthcare organizations throughout the pandemic is that there is a big difference between two-way video visits and [end-to-end] virtual care,” Larsen said.

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