Brian Gormley | September 24, 2014
WiserTogether Inc ., which provides treatment comparison software to employers and health plans, has raised $9 million in Series B financing and formed a relationship with medical-cost transparency company Castlight Health Inc.
New investors Martin Ventures and Merck Global Health Innovation Fund led the round for WiserTogether, which has now raised $20 million since forming in 2008. The company’s founder and chief executive, Shub Debgupta, also joined the financing, as did prior investors Blue Heron Capital, Grotech Ventures, Harbert Venture Partners and 7Wire Ventures.
WiserTogether’s software enables consumers to compare treatments according to personal, financial and clinical criteria. A patient with back pain, for example, could look at all options available, what similar patients selected for their treatment, and what therapy orthopedic doctors chose when faced with this condition. The company, based in Washington, serves more than three million people through their employers and health plans. Its customers include Corning Inc.
The company has relationships with various cost-transparency companies, including Castlight Health, which went public in March. In cases where Castlight and WiserTogether share common clients, the companies are able to connect their two solutions to simplify consumers’ decision making, according to WiserTogether.
With employers shifting more responsibility for medical care on to workers through high-deductible health plans, workers need tools to improve their decision-making. WiserTogether has gathered data from several sources to help with these decisions, collecting some 4.2 million data points, according to Mr. Debgupta.
Mr. Debgupta declined to discuss the company’s revenue but said it well on its way to profitability.