2020 was the deadliest year in drug-related deaths here in the United States. Between the Covid-19 pandemic and the opioid epidemic still raging in many parts of the country, drug addiction has hit a boiling point in America, ruining countless lives.
This is a massive, complex problem, but experts agree that it can be addressed when we expand access to treatment and mental healthcare. Eleanor Health, a Waltham-based startup, is working to do just that. The company announced this week that it raised $20 million in Series B funding from several investors, including Town Hall Ventures, Echo Health Ventures, Mosaic Health Solutions and Warburg Pincus.
Launched in 2019, Eleanor Health claims to be the first outpatient addiction and mental health provider that offers care through a value-based payment structure, meaning it operates based on outcomes rather than the volume of services provided. The company provides various services including peer coaching, at-home visits, telehealth and transportation assistance, with the goal of delivering affordable, comprehensive care that promotes long-term recovery.
“With the addiction crisis continuing to worsen, many have ignored the most important fact about addiction: it’s chronic,” CEO and co-founder Corbin Petro said in a statement. “When cared for in the right way, using a whole-person and evidence-based approach, people have the ability to not only survive, but thrive.”
All told, Eleanor Health seems to have made a significant impact over the last two years. According to the company, more than 80 percent of its patients have reduced their substance use, 70 percent reported that their depression and anxiety had improved, and the platform has decreased users’ hospital stays by more than 80 percent. Adam Krainson, a principal at Warburg Pincus, says the firm was “immediately impressed” with Eleanor Health.
“Their tremendous commercial traction with value-based partnerships that pay based on outcomes and align financial risk for populations set them apart from other industry providers,” Krainson said in a statement. “We are pleased to join them in this critical juncture and look forward to continuing the tremendous momentum Eleanor has experienced.”
Eleanor Health says it is on track to have more than 50,000 users by next year, so this latest investment will be used to keep up with the rising demand. The company currently operates 18 clinics and a fully virtual platform across six states, including Massachusetts, and plans to go even deeper in its existing markets by further developing its product and executing additional payer contracts to take on more patients.
