We got an exclusive look at the presentation that Cedar used to convince investors like Andreessen Horowitz to bet on the startup’s vision of a better way of paying for healthcare
This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now.
- Cedar, a company that helps make paying medical bills easier, just raised a $200 million Series D.
- Here’s the presentation the company used to win over investors as it raised its Series C in 2020.
- The presentation outlines the startup’s plans to reinvent how people pay for doctors visits.
- Visit Business Insider’s homepage for more stories.
Understanding how much you owe after a doctor’s office visit or surgery can be a long, frustrating process.
There are forms that come from your health insurer summing up how much you might owe, while your doctor’s office might tell you a completely different amount. And it might be months until any of that information shows up in your mailbox, at which point you might’ve already forgotten that particular visit.
Tackling that bad billing experience is the focus of Cedar, a five-year-old New York startup. On Tuesday, the company said it raised $200 million in a Series D round led by Tiger Global Management. The round values Cedar at $3.2 billion.
The round closed nine months after Cedar raised $102 million in funding in a Series C round led by Andreessen Horowitz. $77 million of the investment was equity and the rest was venture debt from JPMorgan.
In all, the startup has now raised more than $350 million.
Insider in June got an exclusive look at the presentation Cedar used to win over investors in the Series C round. The presentation, shared by Cedar, omits some slides that contained financial information.
The presentation shows how Cedar plans to expand beyond its initial offering, which helped make it easier to pay for a doctor visit.
In partnership with two health systems, Cedar is building a set of tools that aim to improve the experience for patients when they go to the doctor. That includes appointment reminders, software to take down insurance information and provide price estimates, and tools that let patients check in for appointments digitally.
Read on to see the full presentation.
This article was initially published in June 2020 and has been updated in March following Cedar’s $200 million Series D.
New York-based Cedar got its start in 2016, based on the premise that medical billing is a messy process.
To fix that, Cedar works on making the experience for patients better.
After laying out the company’s mission, Cedar’s presentation to investors lays out why healthcare billing is such an issue in the US.
To start, patients are increasingly on the hook for more of their medical expenses. Americans are now on the hook for $366 billion of out-of-pocket spending, according to data from the Centers for Medicare and Medicaid Services compiled by Cedar.
It can be difficult for patients to figure out how much a visit will cost before they go to the doctor, and the experience afterward is confusing, too. Bills often come much later, and they can be hard to understand.
The billing process, Cedar contends, was not built to interact with patients. Patients are contacted both by their doctor’s office and by the insurer, and it can be confusing to figure out how much you’re expected to pay, which can result in a bill going to collections.
It’s not just patients who struggle with the billing process, the presentation argues.
As a result, health systems have gotten “aggressive” with their collection practices, in turn becoming the subject of investigations. For instance, ProPublica found that a nonprofit hospital in Memphis was suing thousands of patients for unpaid medical bills. Later, the hospital erased the debt for thousands of patients.
You can read the full story from ProPublica here.