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New York-based Cedar, founded in 2016, is developing a health care financial engagement platform for hospitals, health systems and medical groups that clarifies and simplifies the financial experience for patients, improving bill resolution and payment outcomes for providers.
The deal includes $77 million in venture capital and $25 million from JP Morgan in venture debt, the company said in a written statement. This round brings Cedar’s total capital raise to $157 million to date, the company said. Cedar last raised funds two years ago in a $36 million Series B, according to Crunchbase data.
Other participants in the Series C round included Kaiser Permanente, angel investors Jerod Mayo, linebacker coach for the New England Patriots, and Dr. Jeff Vacirca, CEO of New York Cancer and Blood Specialists. Existing investors Kinnevik, Thrive Capital, Lakestar and Founders Fund also participated.
TransUnion reported study findings on Monday that revealed “70 percent of patients said knowing costs before a procedure helps them anticipate charges and budget for payments, but only 25 percent are very satisfied with the payment methods offered by their provider.” A 2018 study, also by TransUnion, reported that uncompensated care to hospitals increased by $2.6 billion dollars in 2016.
The new round of funding will be used to expand the company’s reach and accelerate product innovation and expansion, the company said. Cedar also announced a partnership with North Carolina-based health care system Novant Health, to provide personalized payment experiences for patients and pre-visit digital engagement.
“The COVID-19 pandemic has put a spotlight on many of the inefficiencies and archaic processes across our current health care system which has, in turn, driven an increase in the adoption of platforms like Cedar’s among health care providers,” Florian Otto, CEO and co-founder of Cedar, said in a written statement. “Through this round of funding and our new partnership with Novant Health, Cedar’s patient engagement and payment technology platform will be able to offer an improved experience for more patients with simplified and personalized digital engagement strategies and payment support options.”
In addition to the investment, Andreessen Horowitz’s managing partner, Scott Kupor, will join Cedar’s board of directors.
Illustration: Li-Anne Dias
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