Transcarent to buy part of virtual care company 98point6
Transcarent, a digital platform focused on the self-insured employer market, announced plans to acquire assets from 98point6, including its AI-enabled virtual care platform and care business.
According to reporting by Forbes, the deal is worth up to $100 million. It includes 98point6’s business with self-insured employers, health systems and payers, as well as an affiliated medical group.
The company offers text-based virtual care that uses an AI chatbot to collect and relay health information to a provider, who can then manage care. Following the deal, which the companies expect to close at the end of the month, 98point6 will focus on licensing its software to third-party providers.
“We can think of no better company to continue nurturing our customers and Members than Transcarent as we enter our next phase of growth, which will focus on software licensing under the 98point6 Technologies brand,” Jay Burrell, president and CEO of 98point6 Technologies, said in a statement. “Virtual care is the bedrock of healthcare. We remain committed to innovating new technology solutions and business models that work upstream to give health care providers the infrastructure they need to succeed with consumers.”
Transcarent provides a digital layer that aims to improve the healthcare experience by connecting patients with doctors to help manage oncology care and plan surgeries and rehabilitation.
“By combining the 98point6 AI-powered virtual care technology and an affiliated group of world class physicians with Transcarent’s comprehensive care platform, we will deliver consumers and employers what they really want and need. Leveraging AI to drive personalization and access to care will revolutionize the virtual care experience, for the first time combining best-in-class technology with human touch. That’s a winning combination,” Transcarent CEO Glen Tullman said in a statement.
THE LARGER TREND
Transcarent emerged from stealth in 2021 and announced a $200 million Series C raise early last year. The company, led by Livongo vet Tullman, has been expanding its offerings, including an oncology service, behavioral healthcare navigation and pharmacy benefit tools.
98point6 announced two rounds at the height of the COVID-19 pandemic in 2020, including a $43 million Series D and a $118 million Series E. Last year, the company brought in $20 million to scale its licensing vertical alongside strategic partnership with Washington-based MultiCare Health System, the first to license the virtual care technology for its hybrid urgent and primary care service.