Eleanor Health Announces $20 Million Series B Financing to Address the Growing Need for Value-Based Addiction and Mental Health Treatment
The Warburg Pincus-led round will increase access to comprehensive, whole-person and population-based care for people affected by addiction
WALTHAM, Mass., – May 17, 2021 – Eleanor Health, the first outpatient addiction and mental health provider delivering convenient and comprehensive care through a population and value-based payment structure, today announced it has closed an oversubscribed $20M Series B financing. The Company received significant participation from all existing investors including Town Hall Ventures, Echo Health Ventures, and Mosaic Health Solutions, as well as new participation from Warburg Pincus, a global private equity firm which has invested more than $90 billion in over 930 companies.
Eleanor Health will use the capital to meet increased need from communities and demand from payers for population, value-based, whole-person care for individuals with substance use disorder and mental health needs. Eleanor Health will manage more than 50,000 members under its innovative population-based partnership models by 2022.
"Since launching in 2019 with co-founders Dr. Nzinga Harrison and Srishti Mirchandani, Eleanor Health has seen significant growth as a result of the outcomes achieved through our medical home model focused on the unique needs of people affected by addiction," said Corbin Petro, CEO and co-founder of Eleanor Health. "The infusion of capital from Warburg Pincus and continued support of our existing investors will be instrumental in furthering our ability to engage, treat, and produce high-quality outcomes while reducing the total cost of care for patients."
Within the past two years, the Company has shown unprecedented results throughout its physical and virtual footprint, including:
- 84% reduction in emergency department and inpatient stays;
- 70% report improvement in depression and anxiety;
- 84% improvement in substance use;
- 76% report improvement in social drivers of health;
- And achieving industry-leading NPS and eNPS of 72 and 71 respectively.
"We were immediately impressed with Eleanor Health’s exceptional leadership and clinical teams, reflective of the diverse populations they serve," shared Adam Krainson, principal at Warburg Pincus. "Their tremendous commercial traction with value-based partnerships that pay based on outcomes and align financial risk for populations sets them apart from other industry providers. We are pleased to join them at this critical juncture and look forward to continuing the tremendous momentum Eleanor has experienced."
To date, Eleanor Health operates 18 clinics and a fully virtual model statewide across Louisiana, Massachusetts, New Jersey, North Carolina, Ohio, and Washington, delivering care through population and value-based partnerships with Medicare, Medicaid, and employers. The Company plans to scale the business by going deeper in existing markets by executing additional payer contracts to manage new populations and further developing its proprietary analytics and technology platform that will support identification, engagement, and treatment of those who need Eleanor’s services most.
"Eleanor Health is at the forefront of aligning best-in-class care with value-based payment to help those affected by substance use disorder and has a proven track record of delivering unprecedented clinical and financial outcomes," said David Whelan, board chair of Eleanor Health and general partner at Town Hall Ventures. "The Company’s mission, to help those affected by addiction live amazing lives, is more important than ever, and Town Hall is thrilled to continue our support of Eleanor as it serves the needs of highly vulnerable, stigmatized populations."
The fundraising comes after the US reported 2020 as the deadliest year in drug-related deaths, with more than 87,000 lives lost to drug overdoses. Eleanor Health remains dedicated to:
- Providing treatment where most convenient for community members, including in-person care in clinics, community-based care in homes, and a 100% virtual model available from the safety and convenience of home;
- Delivering comprehensive services including medications for substance use disorders, psychiatric evaluation, treatment of co-occurring psychiatric conditions, individual and group therapy, nurse care management, support to address social determinants of health, and peer recovery coaching;
- Operating on a payment structure that includes accountability to positive health outcomes achieved, including reducing total health care costs, providing unmatched access, and achieving high patient satisfaction;
- Employing diverse teams of medical practitioners, nurses, addiction clinicians and peer recovery coaches with personal lived experience, to engage and support individuals in achieving their recovery goals;
- And coordinating care across the healthcare and social services continuum to improve the patient journey and increase long-term recovery rates and overall health outcomes for individuals.
"With the addiction crisis continuing to worsen, many have ignored the most important fact about addiction: it’s chronic," continued Petro. "When cared for in the right way, using a whole-person and evidence-based approach, people have the ability to not only survive, but thrive. "
"It’s exciting to see Eleanor Health’s model and recent growth result in improved health outcomes and better-coordinated care for our members," said Nora Dennis, MD, lead medical director for behavioral health at Blue Cross and Blue Shield of North Carolina. "Since we began working with the Company in 2019, they’ve become an integral part of our drive to improve behavioral health access, quality, and outcomes."
To learn more about Eleanor, please visit: www.eleanorhealth.com
For a full list of locations, visit: www.eleanorhealth.com/locations
About Eleanor Health
Eleanor Health is the first outpatient addiction and mental health provider delivering convenient and comprehensive care through a value-based payment structure. Committed to health and wellbeing without judgment, Eleanor Health is focused on delivering whole-person, comprehensive care to transform the quality, delivery, and accessibility of care for people affected by addiction. Eleanor was created in the Oxeon Venture Studio, together with Town Hall Ventures and Mosaic. To learn more, visit: www.eleanorhealth.com