Tech-backed direct provider startup Nomi Health has scooped up Artemis Health, maker of software that allows employers and health plans to analyze their benefits.
Axios reported the deal will set Nomi back $200 million. The acquisition comes about a month after the direct payment startup closed a $110 Series A funding round.
“Nomi Health shares our passion to improve the cost and quality of healthcare in the U.S.,” Grant Gordon, cofounder and CEO of Artemis Health, said in a statement. “We are excited to bring our best-in-class data analytics capabilities to Nomi’s customers and work together to close the gap between insight and action in healthcare.
“Together we will continue to accelerate Artemis’ development of innovative analytics solutions for employers and their advisors, and further our mission by expanding our impact.”
WHY IT MATTERS
Nomi, which also runs pop-up clinics and labs that it has recently been scaling for COVID-19 testing, said the deal will immediately benefit its Nomi Connect payment platform. That system allows employers and other organizations to buy healthcare services directly from providers.
“As costs skyrocket and access shrinks, organizations need clear data at their fingertips and partners who know how to turn these insights into action. Our acquisition of Artemis Health does exactly that.
“Artemis shares Nomi’s outlook that U.S. healthcare is fundamentally broken and new market entrants are best positioned to rebuild it. Artemis’ leadership is well respected, its modern solutions are well designed, and its customers and partners are actively invested in a better way forward,” Mark Newman, Nomi’s founder and CEO said in a statement.
“We’re eager to bring Artemis solutions to the nation’s governors, mayors, CEOs and leaders who are now in the driver’s seat of change more than ever because of the pandemic. Together with Artemis, we will accelerate our roadmap to transform U.S. healthcare for good.”
THE LARGER TREND
Nomi pitches its direct-care approach as a way to cut healthcare costs, a constant concern in the U.S. Half of adults reported skipping or delaying medical care because of the cost, according to a 2021 poll by the Kaiser Family Foundation. Large employers also say the cost of providing health benefits is quickly growing unsustainable.
Big companies like Apple and Amazon have launched their own healthcare services for their employees, while the latter has begun offering its Amazon Care to outside companies.
Other players that aim to improve healthcare price transparency or lower the cost burden include Rivet Health, MedPilot and TailorMed, which recently acquired fellow financial management company Vivor.