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Washington healthcare model secures USD7.5m in venture capital

Qliance Medical Management, which operates insurance-free direct primary care clinics in Washington State, has closed a USD4m funding round from three institutional venture capital firm

Qliance Medical Management, which operates insurance-free direct primary care clinics in Washington State, has closed a USD4m funding round from three institutional venture capital firms.

The funding was led by Second Avenue Partners with participation by New Atlantic Ventures and Clear Fir Partners, bringing its total capital raised to approximately USD7.5m.

The company plans to use the proceeds to add new clinics for its medical practice partner, Qliance Medical Group of Washington, operating under the Qliance brand.

"We see the Qliance direct primary care model as an important transformational option to health care reform that is easily scalable for other communities across the US," says Nick Hanauer, managing partner of Second Avenue Partners, based in Seattle. "Their innovative health care model reduces costs dramatically for individuals and businesses while delivering exceptional care and access for patients."

In lieu of insurance and co-pays, Qliance patients pay monthly membership fees covering all direct care, ranging between USD39 and USD79, depending on their age. In exchange, Qliance patients get unrestricted primary and preventive care for everyday things like vaccinations, checkups, pneumonia, minor fractures, routine women’s health exams, and ongoing care for chronic illnesses such as diabetes, hypertension or obesity. Hospital inpatient rounds can also be included for a slightly higher monthly membership fee.

If outside specialist care or hospitalization is required, Qliance physicians and nurse practitioners serve as a patient’s "medical home," operating as the central coordination point for all other care and services.

"The Qliance direct primary care model begins to fix what is broken with healthcare in America," says John Backus, managing partner of New Atlantic Ventures, based in Reston, Virginia. "With direct primary care like Qliance, it is possible to do what many in Congress think is impossible – to extend quality healthcare to more Americans while actually reducing cost for all."

Qliance currently has one clinic in downtown Seattle and will be opening its second in Kent, Washington in August. A third is planned around the end of this year. The company is currently in discussions with several large groups to extend its model to other parts of the country.

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