BURLINGTON, Mass.--(BUSINESS WIRE)--Groups Recover Together (Groups), a national leader in value-based care for opioid addiction treatment, today announced it has raised $60 million in Series C financing. Oak HC/FT led the round, joining existing investors Bessemer Venture Partners, Transformation Capital, RRE Ventures, Optum Ventures and Kaiser Permanente Ventures.
The latest financing will support the expansion of Groups’ treatment model from locations in 12 states to at least 17 states by the end of 2021. Additionally, after transitioning to serving their members exclusively through virtual care during the COVID-19 pandemic, the company will further bolster its commitment to meeting members where they are by rolling out an enhanced digital experience that will complement its already well-established infrastructure of highly effective brick-and-mortar clinics with integrated telehealth. To help support this deep commitment to building treatment modalities that better serve individuals who want or need their care delivered virtually, Groups also announced it has named Amar Kendale, Chief Product Officer at Teladoc Health, to its board of directors.
“The affordable, high quality opioid addiction treatment that Groups provides has already made a massive impact on the country’s opioid epidemic and this latest financing will help us bring that proven model to even more people who need it,” said Colleen Nicewicz, CEO of Groups. “The COVID-19 pandemic has only exacerbated the risk factors associated with opioid use disorder (OUD), creating a crisis that has resulted in 87,000 fatal overdoses in just the last year alone. With support from our partners, we can play a critical part in reversing those trends by providing treatment to individuals -- when they need it, where they need it.”
The American Medical Association (AMA) recently reported increases in opioid-related mortalities in more than 40 U.S. states as risk factors associated with drug abuse, such as isolation, economic insecurity and worsening mental health, have intensified. Moreover, individuals struggling with OUD continue to face barriers to receiving effective, science-backed treatment. Only about one in five patients with OUD will pursue treatment in some form, as they often lack basic access to care. Even fewer are able to access medication-assisted treatment (MAT), which is a major component of Groups’ care model. One recent study showed that 39% of all U.S. counties lack a single prescriber of buprenorphine, widely considered to be the gold standard of MAT and opioid addiction treatment.
"Groups has been incredibly innovative when it comes to supporting their members during this time of increased need, impressively adapting to challenging circumstances,” said Nancy Brown, General Partner at Oak HC/FT. “Further, their strong commitment to value-based care has allowed Groups to drive better outcomes for traditionally underserved populations where OUD prevalence is highest. We look forward to helping them expand access to this highly effective treatment model and in doing so, save more lives.”
Groups’ track record of achieving industry-leading clinical outcomes -- such as a 74% member retention rate after 6-months -- is enabled by strategic relationships with health plans that allow the company to deliver value-based care. This approach encourages affordability and allows the company to invest in care modalities that are proven to create better outcomes for members -- such as group therapy that builds a supportive community, and care navigation that helps members access social services. Rather than charge on a fee-for-service model that incentivizes providers ordering costly laboratory tests, Groups takes on the financial risks associated with member care, with reimbursement from its health plan partners tied directly to achieving positive outcomes.
“By establishing itself as the national leader in value-based care for addiction treatment, Groups has differentiated itself from other providers,” said Steve Kraus, Managing Partner at Bessemer Venture Partners. “We are thrilled to continue our partnership with them as an innovative force in the fight against the opioid epidemic.”
Today, Groups treats more than 8,000 members across the country, a 45% increase over the past year.
About Groups Recover Together:
Groups Recover Together delivers opioid addiction recovery services that are proven to help individuals get their lives back on track. Groups provides fast, easy access to medication-assisted treatment (MAT), using Suboxone (buprenorphine), as well as a program designed to build a sense of community and accountability. In addition, members gain access to services through Groups' holistic care model, which is backed by the belief that long-term recovery from opioids is tied to social, behavioral and economic factors that aren't typically addressed in traditional treatment models. Learn more at joingroups.com or follow us on Facebook, LinkedIn and YouTube.
About Oak HC/FT:
Founded in 2014, Oak HC/FT is the premier venture growth-equity fund investing in Healthcare Information & Services ("HC") and Financial Services Technology ("FT"). With $3.3 billion in assets under management, we are focused on driving transformation in these industries by providing entrepreneurs and companies with strategic counsel, board-level participation, business plan execution and access to our extensive network of industry leaders. Oak HC/FT is headquartered in Greenwich, CT, with offices in Boston and San Francisco. Follow Oak HC/FT on Twitter, LinkedIn, and Medium.