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  4. A pair of top young healthcare leaders just raised a fresh $18 million for a buzzy startup that's helping doctors provide better care

A pair of top young healthcare leaders just raised a fresh $18 million for a buzzy startup that's helping doctors provide better care

Zachary Tracer   

A pair of top young healthcare leaders just raised a fresh $18 million for a buzzy startup that's helping doctors provide better care
Gil Addo Carlos Reines RubiconMD
  • RubiconMD just raised a fresh $18 million from investors led by Deerfield Management. That brings the startup's total funding to more than $40 million.
  • RubiconMD helps primary care doctors connect with specialists for help in treating patients with more complicated conditions, ranging from heart problems to mental health issues.
  • Buzzy startups, major hospitals, and powerhouse companies like Walmart and CVS Health are reshaping how Americans get healthcare.
  • "We are focused from a product perspective on what can you do to enable primary care to deliver great care in the community," Gil Addo, RubiconMD's cofounder and CEO, said in an interview.
  • Visit Business Insider's homepage for more stories.

A startup that's using tech to help more people get access to healthcare just raised a fresh $18 million from top investors.

RubiconMD helps primary care doctors connect with a specialist for help in treating patients with more complicated conditions, ranging from heart problems to mental health issues. The service is designed for doctors who treat patients who might have a hard time getting in to see a specialist, such as those with low incomes, or who live in more rural areas.

"We are focused from a product perspective on what can you do to enable primary care to deliver great care in the community," Gil Addo, the company's cofounder and CEO, said in an interview.

It's part of a wave of startups reshaping how Americans get healthcare

Buzzy startups, major hospitals, and powerhouse companies like Walmart and CVS Health are reshaping how Americans get healthcare. They're aiming to make care easier to access and more affordable, and are taking approaches that range from delivering care online to setting up new kinds of clinics. The efforts will be particularly important as the US faces a shortage of clinicians, and as the population ages, increasing the demand for care.

RubiconMD's $18 million investment round was led by Deerfield Management, and brings the startup's total funding to more than $40 million, according to the company. The company declined to give a valuation. Optum Ventures, HLM Venture Partners, Waterline Ventures and Heritage Provider Network also invested.

Dr. Julian Harris, a partner at Deerfield who previously worked at the health insurer Cigna, joined RubiconMD's board as part of the investment. Before Cigna, Harris worked on healthcare issues in the administration of President Barack Obama and oversaw the Medicaid program in Massachusetts.

RubiconMD Platform

Data shows RubiconMD can help doctors take better care of patients

Addo, 34, and Carlos Reines, 35, founded RubiconMD in 2013 after meeting at a healthcare event at MIT. Both have MBAs from Harvard Business School. Reines is now the company's president, and both were named to Business Insider's 2019 list of the 30 leaders under 40 who are transforming healthcare.

The New York-based company works with doctors in 37 states, and said this summer that more than 6,500 doctors use the service. RubiconMD has published some data showing that it's service can help people avoid specialist visits and help doctors take better care of patients. A more limited analysis suggests the service can save money, too.

About half of RubiconMD's business is currently linked to the Medicaid health program for low-income people, and RubiconMD is catching on in health plans that serve the elderly, too, known as Medicare Advantage. Over time, the goal is to expand the program's use among other types of health insurers and to reduce the reliance on Medicaid, Addo said.

Typically, health insurers or health systems purchase a subscription to RubiconMD. The service isn't available for individual patients.

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