Commons Clinic Announces $19.5M Series A Financing to Unseat Specialty Care Incumbents With its New Model for Spinal Care, Orthopedics, and Pain Management
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As a massive volume of cases leave hospital facilities and migrate to ambulatory surgery centers, Commons Clinic is becoming the new backbone of specialty care
LOS ANGELES, October 9, 2023-- Commons Clinic, the branded, value-based health system offering all-inclusive, expert care for spine, orthopedics, and pain management, today announced its $19.5M Series A financing led by RA Capital Management with participation from existing investors Floating Point and Courtside Ventures as well as new investor Time BioVentures. Today's financing brings Commons Clinic's total funding to $33.5M including investments from industry-pioneering angels such as Elliot Cohen (Co-Founder, Pillpack), Mike West (former CEO, Rothman Orthopedics), and founders from Cityblock Health, CityMD, PatientPing, Elemy and more. This round of financing sees Commons Clinic add two new board members, Prithviraj Singha Roy of RA Capital Management and John Loser of Floating Point, who join Nick Aubin, co-founder and CEO, Paulo da Costa, co-founder and COO, and Bob Badal, co-founder of Strive Health. Commons Clinic is a branded, independent, value-based health system ushering in a new era of service that isn't held hostage by today's stagnant hospital-centric model.
By 2028, 85 percent of total joint replacement procedures will be outpatient. Cases are rapidly migrating from the traditional, nationwide hospital system to outpatient sites-of-service and ambulatory environments. Additionally, approximately 40 percent of surgeries are low value and can be better cared for with conservative treatment like physical therapy. New, minimally-invasive surgical techniques and conservative—often digital-first—care models are maturing asymptotically to effectively manage high-cost episodic care, with the potential for health plans and consumers to save billions of dollars. These trends unlock value everywhere as specialty care simultaneously gets more affordable, better, and faster.
"With Commons Clinic, I believe there is a once-in-a-generation opportunity to foundationally change how specialty care is delivered, enabling us to win long-term consumer relationships, earn the power of top physicians' loyalty, and capture the power of a rebuilt specialty care value chain," said Nick Aubin, co-founder and CEO, Commons Clinic. "We've been fortunate enough to quickly gain traction, adding six of LA's top surgeons to our group, opening three clinics, and securing a top five national health plan as our anchor value-based partner in our first two years of operations."
Procedures at surgery centers are, on average, 40 percent cheaper than the same procedure at traditional hospitals. Hospital fees account for 61-84 percent of the expenditure for common specialty episodes of care and, over the past decade, have driven 90-93 percent of all increases in cost. There's an estimated $58B of care delivered at an inappropriate site-of-service and over $100B wasted on low-value care each year. Consumers are dissatisfied as their healthcare experience falls short of those delivered by other consumer companies that enable modern life.
"Hospitals continue to consolidate power, increase the cost of care, and drastically underperform against the expectations of today's consumers. They remain the single biggest obstacle to realizing scaled improvement of our nation's healthcare ecosystem," continued Aubin. "We believe in putting our community's elite, specialty physicians in the driver's seat, giving them the power and resources to compete with a more value-based, consumer-focused, and independent platform."
Commons Clinic's approach rearchitects the core components of an integrated delivery network and sees the company own 100 percent of the care platform woven together with native technology. With its group of top orthopedic physicians, beautifully branded care centers, a network of state-of-the-art surgical facilities, and native virtual clinic, Commons Clinic offers consumers all-inclusive care programs for total joint replacements, spinal fusions, and more. The company's vertical integration is key—giving the organization unparalleled control over care, experience, and costs to win in value-based care and earn long-term consumer loyalty. Its simple and transparent bundled payments (surgical and non-surgical) are ideal for both health plans and employers, guaranteeing savings while offering plan members a high-value alternative to high cost hospitals.
"For over ten years, I've been developing and implementing advanced bundled payment models and driving adoption of outcome-based provider contracts; I believe Commons Clinic is the first company to do it right - end-to-end," said Mike Sherman, Venture Partner, RA Capital Management and former Chief Medical Officer of Harvard Pilgrim Health Care and Point32Health. "I'm thrilled that through RA Capital Management's investment I'll be able to support Nick, Paulo and the team as Chief Strategy Officer and evangelize Commons Clinic's transformative approach with my health care industry peers."
"We believe specialty care is the next frontier for innovative healthcare models. Companies like Commons Clinic that prioritize customer experience, cost reduction, and procedural efficacy are best positioned to win," said John Loser, Managing Director, Floating Point. "The last few years have shown that differentiated provider groups—Oak Street, One Medical, Signify Health, just to name a few—can create massive, enduring value even in a challenging market. At Oscar Health, we saw first-hand the power of accessible, transparent brands to demystify the complex healthcare system for consumers. We're eager to impart those learnings as we help Commons Clinic grow and serve more patients, bring incredible physicians into the fold, and rightfully take market share from legacy hospital systems."
About Commons Clinic
Commons Clinic is a specialty health system offering all-inclusive, expert care. The platform converges value-based care, elite physicians, and a portfolio of state-of-the-art ambulatory facilities and surgical centers to offer an end-to-end service that delivers a phenomenal experience to patients. The company has raised more than $33M in venture capital from RA Capital Management, Floating Point, Time BioVentures, and Courtside Ventures, among others. Founded in 2021 by Nick Aubin and Paulo da Costa, Commons Clinic is based in Los Angeles.