Turquoise Health, a healthcare pricing and payment platform, secured $40 million in series C funding.
The startup launched in December 2020 to help patients know the cost of healthcare services upfront before they show up for treatment. Patients can compare costs with Turquoise Health’s online search engine, which also allows users to research providers, services and quality of care. Executives have previously said the goal of the platform is to make shopping for healthcare as simple as buying a plane ticket.
The company has evolved its business from analyzing healthcare pricing data to building a platform that centralizes data, contract information and clinical coverage rules to improve healthcare’s financial infrastructure. The aim is to provide an operating system for healthcare contracts and payments.
“Our goal has always been to move the industry toward clear, accurate, and actionable healthcare pricing,” said Chris Severn, Turquoise CEO and co-founder, in a statement. “By evolving from a data vendor to a full workflow and transaction platform, we are building the infrastructure for transparent, real-time payments. This round allows us to ensure that this model becomes the industry standard.”
The series C investment was led by Oak HC/FT, with participation from existing investors Andreessen Horowitz, Adams Street Partners and Yosemite.
The company obtained $30 million in funding in January 2024 and has raised $95.3 million to date, a spokesperson confirmed to Fierce Healthcare.
Turquoise will use the funds to assist with additional go-to-market efforts, accelerate product development and increase its workforce. The company has grown to nearly 200 employees since its launch.
The upcoming phase of the company’s road map focuses on three key areas: establishing trustworthy rates for all items and services; embedding artificial intelligence into daily workflows; and connecting pricing, contracting and payments.
The startup has amassed a customer base of more than 280 customers, including 10 of the top 25 health systems, four of the five national payers, nine of the top 10 pharmaceutical companies and six of the top 10 insurance brokers. Turquoise said 35% of its monthly active users now utilize multiple products across its platform.
“Turquoise is uniquely positioned at the center of the healthcare economy, leveraging a data moat bolstered by their subject matter expertise, extensive library of over 65,000 contracts and best-in-class user interface,” said Vig Chandramouli, partner at Oak HC/FT, in a statement. “We have tracked Chris and the team since 2021 and are impressed by their ability to expand adoption simultaneously across providers, payers, employers, and life sciences. Their platform doesn’t just provide data; it embeds transparency directly into the negotiation and payment workflows of the industry's largest stakeholders.”