NextHealth Technologies
Drives measurable medical cost reduction through a prescriptive analytics and consumer engagement platform.
| Date | Investors | Amount | Round |
|---|---|---|---|
| - | investor | €0.0 | round |
| investor investor investor | €0.0 | round | |
| N/A | €0.0 | round | |
| investor | €0.0 | round | |
$17.0m | Series B | ||
| Total Funding | 000k | ||
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NextHealth Technologies, founded in 2013 by Eric Grossman, established itself as a healthcare analytics company focused on enabling health plans to optimize their program performance. Grossman, who served as CEO, brought extensive experience from previous leadership roles, including founding health plan sales automation company Connecture and holding executive positions at TriZetto and Ernst & Young. His background in finance and deep involvement in the healthcare sector, such as serving on the board for the Colorado Health Benefit Exchange, shaped the company's direction.
In June 2022, NextHealth Technologies was acquired by Softheon, a provider of cloud-based solutions for health insurance enrollment and administration. Following the acquisition, Grossman transitioned to the role of Chief Commercial Officer for the combined entity. The deal aimed to merge Softheon's capabilities with NextHealth's AI-driven analytics to offer a more comprehensive suite of tools for health plans. Investors from NextHealth, including Norwest Venture Partners and TT Capital Partners, became investors in Softheon.
The core of NextHealth's business is a SaaS-based, AI-powered analytics platform designed for health insurance plans. The platform's business model centers on helping these clients measure the effectiveness of their various cost, quality, and service initiatives. It uses predictive analytics and behavioral economics to identify specific member populations that can be positively impacted by clinical programs. By running rigorous evaluations, the platform determines which initiatives deliver the best outcomes for specific member groups, allowing health plans to allocate resources more effectively and reduce costs in areas like emergency room visits and out-of-network usage. The HITRUST-certified platform integrates these data-driven insights into a client's workflow to promote a continuous cycle of measurement and improvement.
The company successfully raised a total of $27.7 million over several funding rounds prior to its acquisition. Key funding events included a $1 million seed round in August 2015, a $9.5 million Series A in August 2016, and a Series B round of approximately $17-$18.8 million in 2019. The platform was recognized multiple times in Gartner Hype Cycle reports for its work in consumer persuasion analytics.
Keywords: health plan analytics, healthcare data analytics, AI in healthcare, value-based care analytics, member engagement, clinical program optimization, medical cost reduction, predictive health analytics, behavioral economics in healthcare, health plan ROI, consumer persuasion analytics, Softheon, Eric Grossman, HITRUST-certified, care management analytics, population health management, healthcare SaaS, health insurance technology, enterprise healthcare systems, data-driven healthcare decisions