EmployerDirect Healthcare announced the closing of its Series C investment round with Dallas-based Dundon Capital Partners. Under the terms of the investment, Dundon Capital Partners has acquired a majority ownership position in the business.
Financial terms of the transaction have not been disclosed.
The funding supports the growth of the company’s core product, SurgeryPlus, a valuable supplemental benefit to employees of large employers with self-insured medical plan benefits. Currently, SurgeryPlus is available to over 275,000 members nationwide1 and affords them access to best-in-class procedures across EmployerDirect’s Surgeons of Excellence national network. Employees benefit from a zero out-of-pocket option, while employers save 30-50 percent in related procedure costs.
EmployerDirect plans to use the investment from Dundon Capital Partners to scale its technology infrastructure and expand operations. The company’s Surgeons of Excellence network includes pre-negotiated bundled rates to reduce surgery and related costs, while increasing access to high-quality care to participating employees. The bundled solution and industry low complication rates also eliminate unexpected costs to both the employees and employers. Through SurgeryPlus, procedures are available across 34 major categories, including orthopedic, spine, cardiovascular, bariatric, and general surgery along with a wide-range of minor outpatient procedures.
“We are excited to work with the Dundon Capital Partners team, their operational experience and financial backing will help us expand our employer base to more Fortune 1000 companies,” says Clint Hampton, CEO of EmployerDirect. “Our model provides high-quality, low-cost care for employees and their families, while delivering a hard dollar ROI to employers.”
Hampton announced that in addition to the funding, John Zutter, a Partner at Dundon Capital Partners and Bill Esping of EFO Holdings will serve on the company’s board of directors along with members from Austin-based TEXO Ventures, which has been the primary investor of EmployerDirect for the past several years.
Tom Dundon, Dundon Capital Partners’ Chairman and Managing Partner, says: “For many households, healthcare expenses are one of the largest sources of financial strain. Through SurgeryPlus, EmployerDirect has a better way for companies to provide their employees increased access to quality at a lower cost. It’s a benefit every large self-insured employer should consider.”
“EmployerDirect offers a revolutionary approach to planning and paying for high-quality surgical procedures,” says Dr Phil Sanger of TEXO Ventures. “They have spent several years perfecting a model that bundles case rates and pays providers promptly. In an era when medical expenses are the leading contributor to personal bankruptcies and providers are chasing bad debt, this is a game changer. We are excited to partner with Dundon Capital Partners to continue to improve the healthcare landscape.”
