Pearl Health, which offers a technology platform for primary care practices in value-based care arrangements, announced Thursday it had raised $55 million in Series B funding. The company said it also anticipates receiving a $20 million line of credit outside of the equity raise.

The round was led by Andreessen Horowitz and Viking Global Investors, with participation from investors including AlleyCorp and SV Angel. The company announced an $18 million Series A in September 2021. 

WHAT IT DOES

Pearl offers a technology platform geared toward primary care providers participating in Medicare's ACO REACH model. It includes data visualizations and recommendations so clinicians can see which patients may need extra support, like those who have multiple chronic conditions or who have been recently discharged from a hospital.

The startup's tools also aim to distill patient information into easier-to-digest reports and track important metrics, like readmission rates and whether patients are going to annual wellness visits.

Pearl said it will use the funds from the Series B raise to build new partnerships, add new offerings, and invest in research and development. 

"We are grateful to have the support of such esteemed investors as we continue to build technology that enables physicians to provide better care for their patients and helps our healthcare system transition from volume to value," Pearl Health CEO Michael Kopko said in a statement.

"This latest round of funding, combined with our previous investments, will allow us to expand our network and accelerate the development of innovative solutions that place providers at the center of healthcare delivery and cost management.”

MARKET SNAPSHOT

Early last year, the Centers for Medicare and Medicaid Services said it was redesigning its Medicare Direct Contracting Model to an Accountable Care Organization model focused on health equity. The newly designed arrangement, called the ACO Realizing Equity, Access, and Community Health (REACH) Model, began this year with 132 participants.

CMS wants all traditional Medicare beneficiaries in an accountable care relationship by 2030. ACOs are groups of doctors, hospitals and other providers who work together to provide coordinated care to Medicare patients. The goal is to avoid duplicate services and medical errors.

Other companies that aim to provide support and technology services to practices in value-based care arrangements include UpStream Healthcare, which recently raised $140 million in Series B funding, and Aledade, which scooped up $123 million in a Series E round last year.