Insurers and investors are pouring funding into Wayspring, a recently renamed startup providing services to help people navigate treatment for substance use disorder.
The Nashville-based company recently closed a $75 million funding round led by Valtruis, a new subsidiary of private equity firm Welsh, Carson, Anderson & Stowe (WCAS) that invests in value-based care companies.
Some of Wayspring’s other backers include HLM Venture Partners, and payers Centene, CareSource and Highmark Ventures.
Valtruis Managing Director Karey Witty said this investment was the second partnership with WCAS to tackle a “pervasive and growing healthcare issue,” with the newly formed company’s first investment being in kidney care startup Cricket Health.
“Incredibly, more than $90 billion is spent annually on the (substance use disorder) population by Medicaid and Medicare Advantage managed care organizations and other risk-based, delegated entities,” he said in a news release. “And, unfortunately, only 10 percent of the population receives treatment.”
Wayspring got its start in 2012 as AxialHealthcare. The firm initially started by offering software to help providers identify at-risk patients or irregular prescription patterns.
Since then, the company has shifted its focus to provide home-based treatment for substance use disorder, including behavioral health, peer support and primary care services. It also works with provider networks to refer members to high-quality treatment and help facilitate care transitions.
Last year, Wayspring launched substance use disorder management services with three health plans. The company claims those partnerships have driven savings by reducing inpatient readmissions and emergency department visits.
Photo credit: bayhayalet, Getty Images