Avalon Healthcare Solutions raises additional capital
Avalon Healthcare Solutions, a firm into technology-enabled laboratory benefit management, has announced a third round of capital investment in the company.
Mosaic Health Solutions (Mosaic), BlueCross BlueShield of South Carolina, and Francisco Partners are investors in the round.
Echo Health Ventures (Echo) will administer this investment for Mosaic.
The new capital will be used to enhance Avalon's comprehensive laboratory benefits management solution and clinical capabilities, as well as to strengthen growth opportunities.
Avalon CEO Bill Kerr said: "The year 2016 was one of significant accomplishments for Avalon.
"Our clinical advisory board and staff delivered the industry's largest body of lab medical policies, and we launched our first-of-its-kind cloud-based technology that already has successfully managed millions of claims in tenths of a second each.
“In addition, we created a national network of independent laboratories to serve our clients in delivering cost-effective, high quality testing."
Avalon's transformative model is in line with Mosaic's and Echo's view of a more consumer-centric and cost effective health care system.
Echo Health Ventures CEO Rob Coppedge said: "Echo Health Ventures partners with companies that transform the way health care is delivered, making it more efficient and cost-effective for consumers.
"Leveraging the company's deep expertise in lab science, industry leading technology and effective management of a broad lab network, Avalon has made health care lab solutions more consumer friendly, redefining the way health plans, physicians and laboratories coordinate testing for millions of patients."
New clinical lab testing technologies and costs are accelerating, and inappropriate testing or missing key screenings can result in complications and significant expense arising from unwarranted care or overlooked treatment. Avalon's comprehensive solution addresses these challenges across the spectrum of lab activities, from routine blood work to complex genetic-based tests.
BlueCross BlueShield of South Carolina senior vice president Dale Rish said: "As Avalon's initial client, BlueCross BlueShield of South Carolina has been highly involved in the company's development.
"We are confident that the Avalon program can produce tangible results in improving the quality and cost effectiveness of lab care."
Cain Brothers served as financial advisor to Mosaic.
Financial terms of the investment are not being disclosed.