AI Health Care Startup 98point6 Sells Care Delivery Unit for $100MAI Health Care Startup 98point6 Sells Care Delivery Unit for $100M
98point6 clients Boeing and Kindercare can now access Transcarent's services
March 13, 2023
At a Glance
- Transcarent buys the care delivery division of AI health care startup 98point6 for a reported $100 million.
- AI chatbot facilitates initial questions before human healthcare worker takes over.
- 98point6 shifts to software-as-a-service model.
The care delivery division of AI health care startup 98point6 has been acquired by Transcarent, a Silicon Valley health tech group.
98point6 offers an AI-powered virtual care platform that uses text messages with patients to acquire information, which is then summarized for a human clinician who takes over the chat.
No financial details were disclosed in the official announcement, however, Forbes reports that the deal is worth around $100 million.
As part of the acquisition, Transcarent will take ownership of an irrevocable software license as well as the company’s physician group. 98point6 will discontinue its direct patient care services and transition to a “pure play technology company,” called 98point6 Technologies.
The likes of Banner|Aetna, Kindercare and Boeing who used 98point6’s existing solutions will be able to access Transcarent's services. Transcarent’s clients already include UPS, Rush University, and Kemper.
“We're now going to get the SaaS type margins that were difficult for us to achieve when you're providing care,” said Jay Burrell, CEO of 98point6 Technologies.
The deal means over 150 doctors and clinical support staff will now be working for Transcarent. The organization has conducted over half a million patient visits, with its app that connects clients to a clinician within 60 seconds.
The transaction is expected to close March 31, after which 98point6 Technologies will continue to develop solutions and focus its efforts on licensing its software to third-party health care providers.
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