Arbital Health Secures $31M to Enhance Value-Based Care Infrastructure

Arbital Health, a startup combining AI-powered analytics with actuarial expertise, has raised $31 million in Series B funding to expand its infrastructure layer for value-based risk contracting. The investment, led by Valtruis with participation from existing investors Transformation Capital, Healthy Ventures, and Shaper Capital, aims to address longstanding challenges in the adoption of value-based care arrangements.

Bridging the Data Gap in Risk-Based Contracts

Founded in November 2023 by Brian Overstreet and Travis May, Arbital Health seeks to solve a critical issue in value-based care: the data asymmetry between payers and providers. The company's platform centralizes fragmented data and automates contract reconciliation, providing real-time insights into contract performance.

"There's a huge data asymmetry where payers really know what's going on. Providers don't, but providers are the ones taking on risk," explained Overstreet, Arbital Health's president and CEO. "We think this is a major blocker for value-based care taking off at scale."

The startup's solution combines data analytics with a team of specialized actuaries to level the playing field between payers and providers. By offering transparent, real-time contract monitoring, Arbital Health aims to reduce conflicts and improve decision-making in risk-based arrangements.

Expanding Capabilities and Market Reach

With the new funding, Arbital Health plans to enhance its payer-facing capabilities, expand its actuarial team, and further develop its AI and automation features. The company has already launched a beta version of an AI chat application that allows customers to query their data, with a full launch expected in Q3 or Q4 of this year.

Currently, Arbital Health works with 40 payers, providers, digital point solutions, value-based care enablers, and integrated delivery networks. The platform has onboarded more than 600,000 patient lives and expanded partnerships with organizations including HarmonyCares, Aligned Marketplace, Arkos Health, and Complete Health.

The company projects significant financial benefits for its clients. For a medium-sized payer-provider network managing $100 million in annual value-based care contracts, Arbital estimates cost savings of $5 million to $10 million in reduced administrative and operational costs, as well as increased revenue of $20 million in additional shared savings through improved performance.

As the healthcare industry continues its shift towards value-based care models, with projections suggesting growth from $500 billion currently to a potential $1 trillion, Arbital Health's infrastructure layer could play a crucial role in facilitating this transition. The company's approach, combining AI-driven analytics with specialized actuarial expertise, positions it to address key challenges in the evolving healthcare landscape.