2 days ago
14. Transcarent
Founder: Glen Tullman (CEO)Launched: 2020Headquarters: Denver, ColoradoFunding: $940 millionValuation: $3 billionKey Technologies: Artificial intelligence, generative AIIndustry: Health carePrevious appearances on Disruptor 50 list: 1 (No. 17 in 2024)
Over a third of insured adults say it's difficult to understand what their health insurance covers, according to research from health policy organization KFF. The confusion that comes with navigating insurance can result in more costly medical bills. Digital health startup Transcarent wants to tackle this challenge and help Americans receive affordable, high-quality care.
Designed for self-insured employers and their workforces, Transcarent provides employees with personalized care, medication savings and information regarding their benefits. Members are guided based on their individual medical history and insurance plan, and their top spending categories, whether it is cancer care, muscle and joint health, mental health or weight management. Transcarent also provides pharmacy care and claims that it has saved clients 40% on pharmacy costs.
The information that is analyzed for each member is designed to suggest next clinical steps and connect them with virtual and in-person medical professionals best suited to treat their specific needs. It is also creating more narrow one-stop shop solutions based on critical health needs. Transcarent partnered with Evernorth Health Services' new Oncology Benefit Services program in October, combining cancer services, medical benefits and personalized patient support in one digital platform.
The biggest deal for Transcarent closed in April, when it officially acquired Accolade, a health-care delivery, navigation and advocacy service which had gone public in 2020, for $621 million. Now working as a combined organization, Transcarent and Accolade are serving more than 20 million members, along with over 1,700 employer and health plan clients.
"Transcarent and Accolade coming together is an important step to make it easier for everyone to access the high-quality, affordable health and care they deserve," said Transcarent CEO Glen Tullman in a statement.
Before Transcarent, Tullman was the CEO of remote health management company Livongo until it was acquired by Teladoc in 2020. At that time, the merger led the companies to a joint enterprise value of $37 billion. Now, Teladoc's market cap is just under $2 deal is a poster child for the the growing pains that the digital health sector has run into after a rapid rise during the Covid era.
Accolade was one of the many digital health companies that went private due to the industry slowdown in 2024.
Despite this post-pandemic shift, Transcarent announced a $126 million Series D investment last year led by General Catalyst and 7wireVentures, where Tullman is co-founder and serves as a managing partner. In an interview with health and medicine news site STAT, Tullman said that Transcarent plans to use its latest funding to further expand its application's AI and pursue additional acquisitions.
