Venture funding in the overall health tech market fell 27% from 2022Read more...
This week the company raised an $8 million funding round and added Jonathan Locker to its board
More than half of all Americans have health insurance through an employer, but it's a system riddled with inefficiencies and a lack of transparency, resulting in high costs and low satisfaction.
This is the problem being solved Rightway Healthcare, a New York-based company that provides an enterprise healthcare platform that enables employees to better navigate their healthcare plans. They can log in to the Rightway app to get information on doctors, facilities, and services. They can also connect to a dedicated navigator who can help them find the most efficient and cost effective health services.
Earlier this week, the company announced that it raised $8 million in Series A funding from new and existing investors, consisting of strategic family offices. Rightway Healthcare previously raised a $2 million in a seed round in November 2017.
The company says it will use the new capital raised to expand its sales team, increase the breadth of its product offering and enter into new markets.
In addition to the new funding it was also announced that Jonathan Locker, a participating investor and former partner at Tiger Global Management, has joined the Board of Directors at Rightway.
Jordan Feldman, CEO of Rightway Healthcare, spoke to VatorNews about the company's new funding round, how the healthtech space is changing and where he wants to see his company go in the next few years.
VatorNews: What is the problem that Rightway Healthcare is trying to solve? What is your solution?
Jordan Feldman: Rightway is focused on solving a two-sided problem in healthcare. On one side is a frustrated consumer who is confronting a healthcare ecosystem that burdens them with more information, more choices and more financial accountability than ever before. This is not only the result of cost shifting and high deductibles, but also due to the shifting delivery model in healthcare. On the other side is an employer who is dealing with rising costs, multiple point solutions and the elusive search to right size cost structures while still maintaining quality and accessibility.
Rightway provides employers with a comprehensive analytics and software healthcare ecosystem to optimize employer expenditure and produce high-quality, cost-efficient healthcare experiences for employees. The platform serves as the single point of contact which then becomes every employee members’ continual point of contact throughout their healthcare journey. The service is available via smartphone, web and by calling or messaging members’ personalized navigator to guide them with a “doctor in the family” approach to navigation and advocacy.
VN: Who is the typical customer for Rightway Healthcare? Walk me through some typical use cases.
JF: Rightway partners with various companies ranging from business and professional services to technology to labor unions.
When Rightway onboards a new customer, it begins using data and to understand the historical spend and profile of a population. It also uses this information to set a baseline for comparison. The initial focus is on engagement. We use a multi-dimensional approach to activate and elevate the brand and use cases within the organization. The members on the Rightway platform benefit from a healthcare platform that solves their core navigation frustrations – we provide personalization, concierge support and hold the members hand through every step of the continuum.
VN: What kind of ROI have your customers seen by using your platform?
JF: Rightway’s goal is to demonstrate tangible and quantifiable ROI for its employers. Rightway measures all components of spend and ties each interaction, intervention and navigation back to a historical cohort. We then assess and measure the impact on a global basis to demonstrate a tangible ROI. Customers we work with see a 4.0x ROI vs. Rightway costs in year one and we have successfully demonstrated that we can reduce non-catastrophic and preventable utilization for organizations we partner with.
VN: What new markets are you looking to enter? Why those in particular?
JF: Localization in healthcare is an important element in how we think about our deliver, but we are having success taking what we did on a local level to a national platform. As such, while our product launched in Florida, we have scaled across New York, California, Pennsylvania, and more by enhancing our navigation capabilities and overall knowledge within the consumer healthcare space.
VN: What does Jonathan Locker bring to the company as a member of the board of directors?
JF: Jon was a Seed investor who has seen the evolution of Rightway from the beginning. He is aligned with our vision and is long term in his thinking in how this market is won.
VN: How has the healthtech space evolved in recent years, and how has that allowed a company like Rightway Healthcare to thrive?
JF: The health tech space has evolved into one that is focused more on meeting the patient/consumer closer to where and how they are seeking service. This includes more personalization, more precision services, and more accessible front doors into healthcare (both physically and virtually). This increased emphasis on the aforementioned elements served as Rightway’s proof of concept and has allowed for our success thus far.
VN: What is your ultimate goal with Rightway Healthcare? Where do you want to see the company in the next five years?
JF: The ultimate goal is to change the way the consumer thinks about the healthcare space. If we can ameliorate the anxiety, confusion, and frustration that is so ubiquitous amongst the consumer population, then we have accomplished our goal. Not only does this save our customers both time and money, but it opens the door to further transparency and efficiency in the healthcare landscape.
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