Two pioneering healthcare startups have united forces after securing a significant investment from 7wireVentures, with the mission to improve healthcare access for traditionally underserved communities.
GroundGame Health, recognized for collaborating with health plans and community groups to dismantle social obstacles to healthcare, has combined with SameSky Health, known for its innovative tech platform that assists health plan members in overcoming cultural and linguistic challenges to maximize their benefits.
The newly merged entity has also successfully raised a $17 million Series A funding round, spearheaded by 7wireVentures, a prior investor in SameSky Health. Elevance Health, a major health insurance provider and former investor in GroundGame Health, also contributed to the funding round.
Studies suggest that unmet social needs such as inadequate nutrition, unsafe living conditions, and unreliable transportation can influence over 50% of health outcomes. Moreover, cultural and linguistic disparities can further deter individuals from seeking necessary healthcare services.
Health plans are also financially affected, as patients who delay routine healthcare, such as primary care visits, are more likely to require emergency services, resulting in substantial costs.
By addressing these barriers in unison, GroundGame’s CEO Susan Rawlings Molina believes the merged companies can enhance patient healthcare access while simultaneously reducing expenses for payers.
“Everybody knows we have these needs in the market, and we are today the only ones that are literally closing the loop in the last mile,” Molina indicated. “The market opportunity has always been there, but now the technology is here, and we’re not afraid of the hard work of that.”
Initially in discussions for a partnership since October, GroundGame and SameSky realized the mutual benefits of a merger. GroundGame has primarily worked with Elevance Health to identify and support high-risk members in overcoming healthcare barriers, while SameSky has offered its cultural engagement technology to 11 payer and provider customers.
Despite the legal nature of the transaction being an acquisition by GroundGame, Molina characterizes the move as a “merger of equals” due to the synergistic integration of both companies’ customers, employees, and products.
While the merged entity has not yet settled on a new name, plans for rebranding are expected to conclude by the end of June, with the merger officially sealed on April 2. Abner Mason, founder and CEO of SameSky, will serve as the chief transformation and strategy officer of the combined company.
Expansion plans are on the horizon, as the merged company aims to serve patients across all 50 states, with GroundGame having a prior presence in 34 states and SameSky offering nationwide benefits.
Neither startup had disclosed any funding rounds before this Series A. GroundGame, established in 2015, raised $5 million in 2022. SameSky, founded in 2017, had secured approximately $30 million prior to joining forces.
7wireVentures’ renewed investment in the merged company stems from its unique market position in addressing the social needs of vulnerable populations. Robert Garber, a partner at 7wireVentures, praised the company’s demonstrated ability to deliver localized care at scale in over 30 states.
With the new influx of Series A funding, the company intends to fast-track its growth, continue its revenue-doubling trend since 2020, and extend its services to a wider range of payer and provider customers, including self-insured employers.
