Boston digital health startup Cohere Health announced on Tuesday that it has raised $36 million in its second round of funding less than a year after it officially launched.
Cohere Health works with health insurers and physicians to speed up the prior authorization process, by which a physician may have to request approval by fax or phone for drugs and treatments before an insurer will agree to cover the cost. According to a December 2020 study by the American Medical Association, 94 percent of physicians say patients experience delays in receiving care during this process, and in some cases, authorization issues with insurers cause patients to forgo care entirely.
Siva Namasivayam, the chief executive of Cohere Health, said the company’s automated software platform offers an alternative to “processes based on outdated technology that previously took much longer and caused aggravation for providers and office staff.” The company says 90 percent of its requests receive an immediate determination.
The funding round was led by Boston venture firm Polaris Partners, with participation from new investors Longitude Capital and Deerfield Management and existing investors Flare Capital Partners and Define Ventures.
“We see a lot of healthcare companies adding automation to legacy processes that still remain fundamentally broken,” said Dave Barrett, a managing partner at Polaris. “What’s exceptional about Cohere Health is their vision to reimagine the way patients, physicians, and health plans work together.”
Cohere Health launched last summer with $10 million in venture funding and then raised an extended round in the fall of the same amount. The company has 150 employees, including about 50 in Boston.