Arbital Health Raises $31M to Support Value-Based Care Contracting

Arbital Health, a health tech company focused on value-based care, has secured $31 million in Series B funding, the company announced last week.

The San Francisco-based startup provides infrastructure for payers and providers to help them manage risk-based contracts. Its platform predicts financial outcomes, measures performance across contracts, among other services. It also offers advisory services from a team of actuaries to help clients with the creation and optimization of risk contracts.

Arbital Health’s $31 million Series B round was led by Valtruis and included participation from existing investors Transformation Capital, Shaper Capital and Healthy Ventures. Founded in 2023, the company has raised $46 million in total.

“Arbital Health has built something the healthcare industry desperately needs: the critical infrastructure that empowers payers and providers to reconcile their risk-based contracts with accelerated performance insights,” said Mike Spadafore, managing director at Valtruis, in a statement. “By combining healthcare’s top actuaries with an advanced, AI-powered platform that automates complex actuarial workflows, Arbital Health is transforming how financial, and performance risk is understood and managed across the system.”

The financing will be used in a few ways, according to Brian Overstreet, Arbital Health’s co-founder and CEO. It will help expand its payer-facing capabilities and “accelerate value-based care contract performance monitoring, management and reconciliation across all major risk models,” he said.

It will also be used to grow its actuarial team and expand its AI-powered platform, he added.

The healthcare industry is increasingly shifting toward value-based care, which links payments to patient outcomes rather than the volume of services provided, as seen in traditional fee-for-service models. However, research shows that while many providers are interested in value-based models, financial and administrative barriers often hold them back.

That’s what Arbital Health hopes to change.

“Value-based care hasn’t succeeded at scale, and that’s not due to a lack of vision or desire,” Overstreet told MedCity News. “The complexity of risk-based contracts, the data fragmentation, and the lack of transparency in settlement has made it difficult for organizations to succeed in value-based care arrangements. There’s been no neutral, trusted infrastructure to centralize contract management, provide real-time visibility, and ensure fair adjudication. That’s where Arbital comes in. We provide payers and providers a centralized platform to manage the full contract ecosystem along with expert insights from a dedicated team of actuaries.”

Ultimately, the company hopes to create “better transparency and create a better vehicle and framework for contracting,” Overstreet added.

Arbital Health isn’t the only company trying to support the transition to value-based care. Others include Syntax Health, Privia Health and Aledade.

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