Oshi Health raises $30M to build out its virtual GI care platform

Steven Loeb · April 12, 2023 · Short URL: https://vator.tv/n/5690

This news comes less than a week after Oshi partnered with Aetna to add in-network access

Gastrointestinal issues affect one in four people, yet there's a problem with a lack of access to care, leading to over $100 billion in avoidable spending. Oshi Health, a virtual care company dedicated to GI health, is looking to close these gaps by applying a virtual layer on top of evidenced-based approaches to diagnose and treat GI disorders.

On Tuesday, the company announced that it raised $30 million in Series B funding in a round led by Koch Disruptive Technologies, along with existing investors Bessemer Venture Partners, Flare Capital Partners, Frist Cressey Ventures, CVS Health Ventures and Takeda Digital Ventures. This bring Oshi's total funding to $59.5 million.

Each member of Oshi Health is given access to a personalized integrated care team, including gastroenterologists, nurse practitioners, mental health professionals, and dietitians, all of whom are assisted by health coaches that support lifestyle change and care plan compliance. All care is delivered via telehealth and Oshi coordinates any in-person care with those providers.

Some of the conditions Oshi treats include confirmed GI conditions, such as inflammatory bowel diseases like Crohn’s, ulcerative colitis, and irritable bowel syndrome. In addition, the platform can also help diagnose people experiencing chronic GI symptoms such as constipation, abdominal pain, bloating, diarrhea, or acid reflux.

clinical trial of Oshi Health’s clinical model showed 92% of patients reporting symptom improvement with 98% patient satisfaction, while driving all-cause medical cost savings of $10,292 per patient in just six months. 

The company plans to use the new money, in part, to scale its clinical team nationwide, which currently consists of more than 60 employees, 

"We will grow across all areas of the company as our member volume scales and we add customers and states, particularly building our clinical workforce to meet growing demand," Oshi Health CEO Sam Holliday told VatorNews. 

The funding will also be used to forge relationships with health plans, employers, channel partners, and provider groups.

"Oshi Health works with innovative employers, health insurance partners, health systems and community GI practices that recognize the massive toll digestive conditions have on the lives of their workforces and communities and want to ensure their members have access, at little to no cost, to care that can give them back sustainable control of their condition," Holliday explained.

"We work with these partners to scale access to multidisciplinary care, reduce healthcare costs, and improve the lives of millions of Americans with chronic gastrointestinal diseases."

Partnership with Aetna 

This new round funding comes less than a week after Oshi announced a partnership with Aetna, through which Aetna commercial members will have in-network access to Oshi’s platform, starting in six states, Florida, Maine, Massachusetts, Ohio, Pennsylvania and Texas. Through this agreement, Aetna members have virtual visits with members of their GI care team, as well as symptom tracking tools and instant messaging services.

In addition to providing access to Oshi's services, the two companies have also entered into a value-based payment arrangement. That means that Aetna members who have specific diagnoses characteristic of chronic GI conditions will also have access to additional care and services, which will be covered under the value-based payment model.

"Our partnership with Aetna is significant as one of the first value-based contracts for gastroenterology care. We applaud Aetna’s actions, and seeing clearly the digestive care category as a top cost driver," Holliday said, noting that Oshi has been delivering care to hundreds of Aetna members for nine months and is "seeing fast uptake by eligible members and strong outcomes with sustained symptom control." 

"This collaboration provides Aetna commercial members with in-network access to Oshi’s integrated, multidisciplinary care -- including often-neglected dietary and gut-brain psychology interventions." 

Ultimately, the mission at Oshi Health is to free millions of people from the burden of digestive health conditions and give them back lasting control, and its goal for the coming years is to build on the clinical and economic validation the company has already seen and make it available at little to no cost as a covered benefit for millions more Americans across all 50 states.

"The most uplifting aspect of what we do at Oshi has been the overwhelmingly positive feedback we receive every single day from our patients about the impact of our care in improving their lives. Beyond achieving 98% satisfaction, about 70% of responders take the time to write comments in an optional field to share how we’ve helped them," said Holliday.

"Through our newly created Ambassadors program, Oshi Health members are stepping up to share their diverse stories about how our integrated care helped them find relief after years of struggling with digestive issues—motivated by the hopes that it will help others find and benefit from Oshi’s care. This impact is what drives and excites our team every day."

(Image source: nm.org)

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