PeerWell, a San Francisco-based health technology company, has secured US$6.5 million in a Series A financing.
The round was led by OMERS Ventures, the venture capital arm of Canadian pension fund OMERS. It was joined by existing backer XSeed Capital and several individual investors.
Founded in 2015, PeerWell provides a surgery optimization platform that helps patients with musculoskeletal conditions prepare for surgery and recover faster. In so doing, it contributes to lowering patient risk, controlling costs, and improving return-to-work times.
Led by CEO Manish Shah, PeerWell will use the funds raised to accelerate the roll-out of its worker’s compensation solution.
Photo: Manish Shah, co-founder and CEO of PeerWell.
PeerWell Announces $6.5 Million in Series A Funding to Rollout
Musculoskeletal Surgery Optimization Platform
Funding will be used to accelerate expansion as compensation programs and health plans utilize PeerWell to tackle the $25B+ orthopedic surgery market
SAN FRANCISCO, August 27, 2019 – Today PeerWell, an innovator and leader in PreHab that helps patients prepare physically and mentally for orthopedic surgery and recover faster, announced a $6.5 million Series A round of funding led by OMERS Ventures and joined by existing investors, XSeed Capital.
PeerWell will leverage the funding to fast-track the commercial rollout of its worker’s compensation surgery optimization platform which has improved patient outcomes and reduced costs in several clinical deployments. PeerWell is the only patient-centered, digital platform to address the whole patient and full musculoskeletal journey—from pain management and surgery avoidance to surgery optimization and guided recovery.
“125 million Americans struggle with daily musculoskeletal issues which accounts for 10% of total healthcare spending in the United States. Nearly half of this total orthopedic care spending comes from elective procedures in insured adults. PeerWell helps workers’ compensation programs, employer health plans, and payers support patients with pain and mobility issues who are facing complex procedures and surgery. Our interactive digital programs guide patients while reducing costs of care and accurately predicting return-to-work times,” said PeerWell CEO Manish Shah.
PeerWell’s evidence-based platform addresses the five pillars of health optimization: Physical Therapy, Nutrition, Pain & Anxiety, Health Literacy, and Environmental Preparation. The platform is now available to all employers and health plans across North America.
“Musculoskeletal issues are considerably costly for employers and the American healthcare system as a whole,” says Michael Yang, Managing Partner at OMERS Ventures. “PeerWell’s surgery optimization platform takes into account the entire patient and full episode while successfully reducing costs for worker’s compensation insurers and employers. It’s a massive innovation in an area that is in desperate need of attention, and we believe PeerWell’s approach to revolutionizing the surgical experience will deliver significant value for overloaded medical programs globally.”
Through continued partnerships with large claims administrators, employers, and Medicare Advantage plans, workers across the United States are being offered PeerWell’s musculoskeletal programs.
“PeerWell is providing a dynamic solution to patient care. It is designed to help reduce the care costs of claims, but it has given people support and superior care throughout challenging episodes. PeerWell is an advanced health platform that is available for employers, large and small,” says Dr. Teresa Bartlett, Senior Medical Officer at Sedgwick, a third party administrator for large employers.”
PeerWell also has an ongoing partnership with Healthcare Outcomes Performance Company (HOPCo), the management company for groups like The CORE Institute, one of the top five largest orthopedic provider groups in the US. Dr. Jacofsky, Chairman and CEO of HOPCo, adds that “With PeerWell, our patients are armed with the best tools for the most efficient care. We’ve seen outcomes improve which impacts the entire network- from patients to payers. With daily digital guidance and monitoring, our musculoskeletal patients receive care tailored to their progress and their needs, which can optimize recovery.”
Other direct partnerships include Medicare Advantage plans like the Golden State Medicare Health Plan. Dr. Sanjay Patil, CEO of Golden State Medicare Health Plan, says, “PeerWell serves our patients and Medicare, and is setting a precedent for how we approach musculoskeletal health and other chronic conditions in this country.”
Also participating in this round were Emmett Shear (Co-Founder CEO of Twitch) and Travis May (CEO of Datavant), joining previous investors Auren Hoffman (CEO SafeGraph, Co-founder of LiveRamp), Kevin Lin (COO of Twitch), Michael Seibel (CEO of Y Combinator), Humble Lukanga, George Mathew (CEO Kespry), Anne Mathew (Stanford Healthcare), Patrick McKenna (Founder One America Works), Charlene Frizzera (Former Administrator of CMS), Joel Jewitt (Co-founder LiveRamp), Arian Foster (ex-NFL), Glover Quin (NFL), Brandon Marshall (NFL), Duane Brown (NFL), and Malik Jackson (NFL).
Founded in 2015 by Manish Shah, Navin Gupta and Evan Minamoto, PeerWell is a surgery optimization platform that has helped thousands of patients with musculoskeletal conditions prepare for surgery or avoid it altogether. PeerWell is an extension of the healthcare team that works to lower patient risk, control costs, and improve return-to-work times. PeerWell collects meaningful data that helps workers’ compensation insurers, payers, third-party administrators, and providers achieve better outcomes, make informed decisions, and reduce the cost of care. Learn more at https://www.peerwell.co/.
About OMERS Ventures
OMERS Ventures, the venture capital investment arm of OMERS, is a multi-stage investor in growth-oriented, disruptive technology companies. OMERS Ventures currently manages over $1B with more than 35 investments in North America and Europe. For more information, please visit www.omersventures.com.