General Catalyst deepened its healthcare investments by leading a $95.5 million funding round for Harbor Health, a Texas-based chain of primary and specialty clinics in high growth mode.
Last year, Harbor Health expanded from two to eight locations and aims to grow further in the next 12 months. Harbor also launched two mobile health units for local employers and grew its clinical workforce to 43 members.
Harbor Health is evolving in other ways as well as healthcare transitions to a more value-based system. The organization signed risk contracts with Blue Cross Blue Shield of Texas in addition to other payers and employers. It also launched an ACO REACH product with CMS and developed an express care clinic for walk-in and after-hours appointments.
With the additional funding, which also included Alta Partners and 8VC, Harbor Health plans to broaden its specialty care offerings and support co-created care plans.
"There's a strong appetite for a fresh approach to healthcare delivery among employers that prioritizes outcomes, enhances consumer engagement and is proactive by design," said Chris Bischoff, managing director of General Catalyst. "We believe Harbor Health is providing ease of access to the largest covered population in the U.S. and bringing much-needed change as the company seeks to transform value-based care for the commercial sector. This aligns with our Health Assurance thesis."
Last year, General Catalyst launched the Health Assurance Transformation Corp., which aims to purchase and operate a health system. Health Assurance is led by Marc Harrison, MD, former CEO of Salt Lake City-based Intermountain Health. The firm works with more than 20 health systems nationwide to provide technologies in its portfolio.
With Health Assurance, General Catalyst aims to transform healthcare services, not disrupt current systems. The firm aims to purchase a health system in the $1 billion to $3 billion range.
General Catalyst also led a $25 million financing round for home health company Maribel Health and a $10 million financing round for biotech company CTRL.