Digital Medical Startup PlushCare Lifts $23M From Transformation Capital
San Francisco-based tech-enabled health care platform, PlushCare, has announced that it has raised $23 million in its Series B funding round led by the US-based health care private equity and venture firm, Transformation Capital. The startup aims to spend the freshly raised capital on multiplying its workforce to double in the coming 12 months.
In 2015, Beau Brinckerhoff, James Wantuck, and Ryan McQuaid founded PlushCare with the aim of providing everyone the more accessible high-quality healthcare services. PlushCare is a tech-enabled caretaking primary care service built explicitly for the modern world. It hires many professionals on its platform like engineers, product managers, customer representatives, and data scientists. It has a strategy that includes massive spending on marketing to grow the business.
PlushCare CEO Ryan McQuaid said that the people in the US regions get crappy health care services, and he wishes to change this healthcare service pattern. Ryan also mentioned that his startup focuses on patient experience — henceforth, it is named as 'Plush' and 'Care.' Ryan aims to build a loyal base service by preoccupying more patients and helping them throughout the patient's health care journey. He mentions that this can offer a competitive advantage, and it can increase demand in crowded spaces.
Since the coronavirus outbreak began, the most booming sector is the virtual health care space. In January, San Francisco-based One Medical has also launched an IPO and has also witnessed its stock price has hit more than 50% in the past 3 months. Alongside this, other virtual health care startups like Vida Health, Carbon Health, and Omada Health have also attracted heavy funding after the outbreak of the pandemic.
The health care digital platform costs $14.99 a month, and every visit priced according to the patient's insurance copay and those who are without insurance will have to pay a flat fee of $59.99. The startup also accepts the most significant private insurance plans. Currently, that does not accept Medicare or Medicaid, and it is available in all 50 states.
The startup has a contract with physicians and primary care doctors to work from 20-40 hours a week, to ensure its patients cultivate a relationship with trust. All the associated doctors are paid on an hourly wage.
The digital health care startup has secured funding before the pandemic, and with this latest capital, the startup has raised a total of $31 million to date.