Turquoise Health, a healthcare pricing and payment platform, has secured $40 million in Series C funding.
The startup was founded in December 2020 to help patients understand the cost of medical services before they receive treatment. Patients can compare costs with Turquoise Health’s online search engine, and users can also research providers, services and quality of care. Executives have previously said the platform’s goal is to make shopping for health care as easy as buying a plane ticket.
The company has evolved its business from analyzing medical pricing data to building a platform that centrally manages data, contract information, and medical insurance coverage rules to improve healthcare financial infrastructure. Its purpose is to provide an operating system for healthcare contracting and payment.
“Our goal has always been to move the industry toward clear, accurate and actionable healthcare pricing,” Chris Severn, Turquoise co-founder and CEO, said in a statement. “By evolving from a data vendor to a complete workflow and transaction platform, we are building the infrastructure for transparent, real-time payments. This round will ensure this model becomes the industry standard.”
The Series C investment was led by Oak HC/FT, with participation from existing investors Andreessen Horowitz, Adams Street Partners, and Yosemite.
The company secured $30 million in funding in January 2024 and has raised $95.3 million to date, a spokesperson confirmed to Fierce Healthcare.
Turquoise plans to use the funding to support further go-to-market activities, accelerate product development and increase its workforce. Since its founding, the company has grown to nearly 200 employees.
The next stage of the company’s roadmap is focused on three key areas: Incorporate artificial intelligence into your daily workflow. and pricing, contracting, and payment connectivity.
The startup has amassed a customer base of more than 280 companies, including 10 of the top 25 health systems, 4 of the 5 national payers, 9 of the top 10 pharmaceutical companies, and 6 of the top 10 insurance brokers. Turquoise said 35% of its monthly active users now use multiple products across its platform.
“Turquoise is uniquely positioned at the heart of the healthcare economy, leveraging its subject matter expertise, extensive library of over 65,000 contracts, and data moat powered by a best-in-class user interface,” Vig Chandramouli, partner at Oak HC/FT, said in a statement. “We have been following Chris and the team since 2021 and have been impressed by their ability to scale adoption across providers, payers, employers, and life sciences simultaneously. Their platform not only provides data, but also embeds transparency directly into the negotiation and payment workflows of the industry’s largest stakeholders.”
