Avalon Healthcare Solutions Raises Additional Capital to Drive Growth
Avalon Healthcare Solutions, the leader in technology-enabled laboratory benefit management, today announced a third round of capital investment in the company. Mosaic Health Solutions (Mosaic), BlueCross BlueShield of South Carolina, and Francisco Partners are investors in the round. Echo Health Ventures (Echo) will administer this investment for Mosaic.
Avalon is experiencing rapid growth as more health insurers express interest in the company's services. The new capital will be used to enhance Avalon's comprehensive laboratory benefits management solution and clinical capabilities, as well as to strengthen growth opportunities.
"The year 2016 was one of significant accomplishments for Avalon," said Bill Kerr, CEO of Avalon. "Our clinical advisory board and staff delivered the industry's largest body of lab medical policies, and we launched our first-of-its-kind cloud-based technology that already has successfully managed millions of claims in tenths of a second each. In addition, we created a national network of independent laboratories to serve our clients in delivering cost-effective, high quality testing."
Avalon's transformative model is highly consistent with Mosaic's and Echo's view of a more consumer-centric and cost effective health care system. "Echo Health Ventures partners with companies that transform the way health care is delivered, making it more efficient and cost-effective for consumers," said Rob Coppedge, CEO of Echo Health Ventures. "Leveraging the company's deep expertise in lab science, industry leading technology and effective management of a broad lab network, Avalon has made health care lab solutions more consumer friendly, redefining the way health plans, physicians and laboratories coordinate testing for millions of patients."
New clinical lab testing technologies and costs are accelerating, and inappropriate testing or missing key screenings can result in complications and significant expense arising from unwarranted care or overlooked treatment. Avalon's comprehensive solution addresses these challenges across the spectrum of lab activities, from routine blood work to complex genetic-based tests.
"As Avalon's initial client, BlueCross BlueShield of South Carolina has been highly involved in the company's development," said Dale Rish, Senior Vice President of BlueCross BlueShield of South Carolina. "We are confident that the Avalon program can produce tangible results in improving the quality and cost effectiveness of lab care."
Cain Brothers acted as financial advisor to Mosaic. Financial terms of the investment are not being disclosed.
About Avalon Healthcare Solutions
Headquartered in Tampa, Fla., Avalon is a clinical and information technology company that helps physicians, consumers, and payers manage the cost effective use of thousands of diagnostic laboratory tests. Avalon uses evidence-based medical science to develop and deploy clinical policies and proprietary software and to manage a national network of providers in the dynamic, complex lab environment.
About Echo Health Ventures
Echo Health Ventures LLC invests to build and grow tomorrow's great health care companies. We invest across every stage and work with our portfolio companies to challenge and transform the health care system. As a strategic collaboration between Cambia Health Solutions and Mosaic Health Solutions, we work closely with our parent companies to catalyze the development of our portfolio companies' and accelerate their innovations to scale nationally. Echo Health Ventures operates nationwide with offices in Seattle, Durham, N.C., and Portland, Ore.. Follow us on Twitter @healthecho.
About Mosaic Health Solutions
Mosaic Health Solutions, LLC, headquartered in Durham, North Carolina, is accelerating health care transformation. By deploying strategic investments of financial and intellectual capital, Mosaic partners with investors and other stakeholders to drive growth for innovative companies across the health care ecosystem.
About BlueCross BlueShield of South Carolina
Headquartered in Columbia, and operating in South Carolina for 70 years, BlueCross BlueShield of South Carolina is an independent licensee of the Blue Cross and Blue Shield Association. The only South Carolina-owned and operated health insurance carrier, BlueCross BlueShield of South Carolina comprises more than 20 companies involved in health insurance services, U.S. DoD health program and Medicare contracts, other insurance and employee benefits services and a philanthropic foundation that funds programs to improve health care and access to health care for South Carolinians.
About Francisco Partners
Francisco Partners is a leading global private equity firm, which specializes in investments in technology businesses. Since its launch over 15 years ago, Francisco Partners has raised over $10 billion in capital and invested in more than 150 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in opportunities where the firm's deep sectoral knowledge and operational expertise can help companies realize their full potential.