Catlight health full#

(The latter is its single biggest source of revenue). Asked whether the prospect of a bubble weighed on his shoulders, Giovanni Colella, Castlight's chief executive and a founder replied: 'We're focused on building an iconic company.' One big winner: Bryan Roberts, a venture capitalist at Venrock, and a co-founder, who bolsters his reputation as the most successful digital health investor.įounded only six years ago, Castlight has amassed a roster of large self-insured customers mainly in the past two years, including CVS Caremark, Microsoft, and Wal-Mart Stores. Castlight is a barometer for the industry. Health IT investors and entrepreneurs who have been eagerly waiting for a liquidity event got it in spades. Investors poured in, sending the stock up from an IPO price of $16 a share to nearly $40, which values the company at more than $3 billion. Grand Rounds merged with telehealth player Doctor on Demand in March to create a powerhouse offering primary care, mental and behavioral healthcare, chronic care, specialty care, care for LGBTQ individuals and patient navigation tools all under the same roof while Accolade acquired virtual primary care company PlushCare for $450 million in April.Castlight Health, which has been at the forefront of price transparency, went public today.

Merging care navigation, including digital touchpoints, into a primary care isn't an entirely new idea, especially as more players looking to tamp down on health costs while improving preventative care turn to primary care models.įor example, Castlight benefits competitors Accolade and Grand Rounds both took significant steps to integrate with digitally enabled primary care companies in 2021. Castlight was founded in 2008, before going public in March 2014 during a red-hot tech market in an initial public offering at $16 a share, valuing the startup at over $1 billion.

Vera then retains any cost savings for managing their members' health.Ĭurrently, Vera operates 26 clinics in 10 states.įor its part, San Francisco-based Castlight offers a digital platform combining health benefits and care navigation to employers and health plans. Unlike many other primary care startups, Vera operates entirely at risk, with its customers paying a flat per-member, per-month fee for its services. Vera's model revolves around whole-person care, including a team of primary care physicians and nurses backed by clinics, a technology platform and health coaching. Central Ohio Primary Care, the largest independent physician-owned primary care group in the U.S., is another strategic partner. Morgan Chase's health-focused venture arm, Morgan Health, which invested $50 million in Vera in August. With its investment in the combined company, Anthem is joining J.P. After close, Castlight will become a privately held company and will operate as a wholly-owned subsidiary of Vera.Ĭastlight and Vera anticipate the transaction to be completed in the first quarter this year. The transaction has already been approved by Castlight's board of directors, but is subject to regulatory approval and other customary closing conditions. That represents a 25% premium to Tuesday's closing price, and a 35% premium to Castlight's monthly weighted average share price. The Seattle-based network is snapping up Castlight at a premium, acquiring all of Castlight's outstanding shares of common stock for $2.05 in cash per share.

Catlight health full#

Combining a value-based primary care provider with a digital platform helping patients and employers navigate the healthcare system is meant to offer more personalized care, while enabling providers to better outcomes and lower costs, management of both companies said in a release.Įmployer clients will also be able to participate in full risk-sharing for their commercial populations, hopefully pushing the healthcare market toward a stronger focus on value, Vera said.