Austin, Texas-based Harbor Health, a primary and specialty clinic group co-founded by Clay Johnston, Ph.D., M.D., M.P.H., the inaugural dean of the University of Texas at Austin Dell Medical School, has received $95.5 million in a funding round led by General Catalyst. Total investment to date is more than $128 million.
The new funding will allow Harbor Health to continue its growth in providing primary care services, broadening the scope of specialty care offerings, and developing plan designs that support care journeys co-created by consumers and their clinicians, the company said. Texas employers can use these plan designs to lower their costs while incorporating an improved, coordinated care system, Harbor Health added.
The startup grew from two to eight locations with 43 clinicians in 2023, with more planed for 2024. Harbor Health also launched an ACO REACH product in 2023, and secured risk contracts with Blue Cross Blue Shield of Texas across multiple product lines. The company says it accepts insurance from Aetna, UnitedHealthcare, Cigna, Humana, Medicare, Medicaid and is working to become in-network providers for all plans.
"We have built a geographically dense care model that is organized around integrated practice units and focused on member health conditions,” Johnston said in a statement. “This new investment and our rapid growth confirm our innovative care model is working, and we're meeting more people where they are with collaborative, team-based care.”
Harbor Health’s web site explains that Johnston’s mission is to redesign the health system so doctors and the team working with them truly get to know the people in their care. “The goal is to achieve better health outcomes for people by being more responsive to their needs, which will ultimately reduce wasteful healthcare spending. This new harmonious vision of health empowers people to know all their care options and costs and creates a partnership with medical providers that remains intact all along a person's health journey.”
"There's a strong appetite for a fresh approach to healthcare delivery among employers that prioritizes outcomes, enhances consumer engagement, and is proactive by design," says Chris Bischoff, managing director at General Catalyst, in a statement. "We believe Harbor Health is providing ease of access to the largest covered population in the U.S. and bringing much-needed change as the company seeks to transform value-based care for the commercial sector. This aligns with our Health Assurance thesis.”
In addition to General Catalyst, other investors include Alta Partners, 8VC, Health 2047 Capital Partners, Lemhi Ventures, Martin Ventures and a series of individuals.
