Omada Health, which developed an intervention program for obesity-related chronic conditions for employers and health plans, has raised a $48 million Series C round,according to a blog entry on its website. It will use the funding to support continued clinical research and enhance the Prevention program, with an eye to expanding it to include for Medicaid patients in addition to its other customers.
Norwest Venture Partners led the funding round. It also added two new investors in the funding round — GE Ventures and dRx Capital. Other participants included strategic investors who are also customers – Humana (NYSE: HUM) and Providence Health & Services. Prior investors also took part including US Venture Partners, Rock Health andAndreessen Horowitz.
It more than doubled its staff numbers in the past year from 75 to 185, according to the blog entry.
Its prevention program is an intervention program for people deemed to be at risk for developing chronic conditions tied to obesity. It combines connected devices such as a wireless scale pre-synced to a participant’s account, a proprietary health-related curriculum, on-demand access to a personal health coach, and an online peer network for support for those at the tipping point for chronic disease, according to a company statement.
Earlier this year, Omada had a study focused on long-term outcomes of its digital health program published in the Journal of Medical Internet Research. It showed that about 187 Prevention program participants diagnosed with prediabetes who started the program lost an average of 4.7 percent of baseline body weight after 1 year and 4.2 percent after 2 years. About 155 who completed the program lost 4.9 percent of baseline body weight after 1 year and 4.3 percent after 2 years. The company claimed that since its founding, it has enrolled more than 20,000 in the Prevention program.
The company’s business model means it is paid based on its results.Many digital health companies have focused on employer wellness, but plenty have criticized tactics like forcing all employees to take part and incentives that essentially punish participants who fall short of their health goals. Many employers have embraced them with the hope that they will help reduce employee healthcare costs.