Town Hall Ventures, the investment firm started by former CMS administrator Andy Slavitt, has raised $115 million. The fund was initially formed in May 2018 to “address the healthcare challenges of the most vulnerable Americans.”
Along with Slavitt, now group executive vice president of Optum, the founding partners include Trevor Price and David Whelan, executives from Oxeon Holding, an executive search and investment firm within life sciences. The firm’s first fund exceeded its target size by more than 50 percent.
The firm, headquartered in New York and Minneapolis, has already brought together four of the five largest non-profit health systems and non-profit health payers that serve 23 million people across 42 states, according to the press release. Its mission is to invest in healthcare companies that serve vulnerable populations covered by Medicare and Medicaid.
“Solving problems for the most complex conditions and populations will require the greatest minds in health care to work together to build exceptional companies,” Price, general partner of Town Hall Ventures and CEO of Oxeon Partners, said in a statement. “Town Hall has assembled a community of activated and engaged institutions, executives, and entrepreneurs that gives us the best possible chance to drive change and impact across the health care system. We believe this represents a major turning point in shifting resources and innovation focused on populations that have long been ignored.”
With the closing of its first fund, Town Hall has invested in three healthcare companies:
- Landmark Health—a home-based care provider whose CEO, Nick Loporcaro, was recruited by Oxeon and Price. The company, which serves Medicare, Medicaid and dual eligible populations, is also backed by General Atlantic and Francisco Partners.
- Bright Health—a technology-enabled health plan with established partnerships with health systems led by CEO Bob Sheehy, former CEO of UnitedHealthcare. Other backers include NEA, Beesemer Ventures and Flare Capital Partners.
- Strive Health—a provider of chronic kidney disease solutions focused on comprehensive coordinated care, early engagement and expanded treatments led by co-founder and CEO Chris Riopelle. The company was developed with the co-founders inside the Oxeon Venture Studio, backed by NEA.
The investment amounts were not specified. Town Hall has already made several other investments in companies that serve the elderly, urban dual eligibles and people with chronic conditions, including Cityblock Health; Somatus; Welbe Health; and Aetion.
“We are pleased to have raised the fund in four months with commitments by strategic limited partners that have the ability to change the delivery of care for millions of people, including four of the five largest non-profit health systems and non-profit health payers serving 23 million individuals,” Whelan said.
In addition to raising funds and making new investments, Town Hall hired Ann Hickey as vice president. She formerly served in roles at Audax Group, Oak Hill Capital Partners, Castlight Health and Archimedes Health Investors.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."