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§ Private Profile · San Francisco, CA, USA
Cloud-based platform connecting self-insured employers to providers for bundled payment surgical procedures and value-based care.
Based in San Francisco, California, Carrum Health operates a cloud-based healthcare platform that connects self-insured employers with regional medical providers through bundled payment arrangements for planned surgical procedures. The company pre-negotiates set fees for common specialty treatments, such as orthopedic and cardiac surgeries, shifting away from traditional fee-for-service models toward value-based care. As of late 2019, the platform served more than 100 employer clients, and the organization recently reported acquiring more covered lives in 2025 than in its previous eleven years combined. The enterprise serves notable corporate customers like U.S. Foods, while its executive team includes leadership drawn from established digital health firms such as Livongo, and its executives have presented on healthcare delivery models at the New York Stock Exchange. Carrum Health was founded in 2014 by Sach Jain and Russell Ivanhoe.
Carrum Health has raised $92.0M across 3 funding rounds.
Carrum Health has raised $92.0M in total across 3 funding rounds.
Carrum Health has raised $92.0M across 3 funding rounds. Most recently, it raised $45.0M Series B in May 2023.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| May 1, 2023 | $45M Series B | Teresa LEE | InterWest, Roger Bamford, Cross Creek Advisors, Revelation Partners, Springrock Ventures, Tiger Global, Wildcat Venture Partners | Announced |
| Jan 1, 2021 | $40M Series A | Cross Creek Advisors, RAY Lane, Scott Shleifer | InterWest, Roger Bamford, Springrock Ventures, Wildcat Venture Partners | Announced |
| May 1, 2017 | $7M Seed | Phyllis Whiteley | InterWest, Roger Bamford, SJF Ventures, Springrock Ventures | Announced |
Carrum Health has raised $92.0M in total across 3 funding rounds.
Carrum Health's investors include Teresa Lee, InterWest, Roger Bamford, Cross Creek Advisors, Revelation Partners, SpringRock Ventures, Tiger Global, Wildcat Venture Partners, Ray Lane, Scott Shleifer, Phyllis Whiteley, SJF Ventures.
Carrum Health is a health tech company founded in 2014 that operates a value-based Centers of Excellence (COE) platform for surgical and specialty care, primarily targeting self-insured employers.[1][7] It builds a digital marketplace connecting employers and employees to the top 10% of providers nationwide, offering bundled payments that eliminate copays, deductibles, and coinsurance while saving employers up to 45% per episode of care and reducing unnecessary procedures by 30%.[1][2][8] The platform serves employers (over 400 groups, from <1,000 to >180,000 employees) and their members needing high-cost procedures like musculoskeletal, cardiovascular, bariatrics, and cancer treatments, solving the flaws of fee-for-service models—high costs, poor outcomes, and overutilization—through AI-driven quality evaluation, a patient mobile app, and care specialists.[3][6][7] Growth momentum includes $40M funding, CB Insights Digital Health 150 recognition in 2021, partnerships like AccessHope for cancer care, and national scaling from a Western U.S. focus.[2][4][5][6]
Carrum Health was founded in 2014 by CEO Sachin Jain in Silicon Valley, driven by his years of experience in healthcare payments and frustration with the fee-for-service model's inefficiencies, which prioritize volume over value and lead to unnecessary procedures and poor outcomes.[1][5][7] The idea emerged from recognizing that employers and patients deserved a better system: a value-based COE network using technology to align incentives, guarantee quality, and simplify care delivery.[7] Early traction came from building a proprietary 50-point provider evaluation process, integrating real-world data with machine learning, and securing backing from investors like Tiger Global, enabling rapid growth to serve hundreds of employer groups and validate savings through peer-reviewed studies and a RAND report.[1][2][5][6]
Carrum Health rides the wave of value-based care transformation in healthcare, shifting from fee-for-service to bundled payments amid rising employer health spend (especially surgical and oncology costs), enabled by digital health adoption post-COVID.[3][5][7] Timing is ideal as self-insured employers seek 20-45% savings on high-cost episodes, fueled by AI/ML for quality prediction and data interoperability; market forces like transparency laws and employer direct contracting favor platforms like Carrum's COE network.[2][6][8] It influences the ecosystem by proving scalable tech-driven bundles (e.g., via partnerships like AccessHope), setting standards for outcome-based incentives, and expanding access to elite care, pressuring legacy providers to adopt efficiency.[3][4]
Carrum Health is poised to dominate specialty care bundles by expanding into high-growth areas like oncology and national scaling, leveraging AI for predictive interventions and deeper employer integrations.[3][6] Trends like AI-enhanced early detection, regulatory pushes for value-based models, and employer-led care redesign will accelerate adoption, potentially doubling its employer base amid healthcare inflation.[2][3] Its influence may evolve from surgical pioneer to full-spectrum platform, redefining incentives to prioritize outcomes over volume—reinforcing its mission to bring common sense to a broken system.[7]