Honest Health, the Nashville-headquartered company that helps health systems move from fee-for-service to value-based care, has locked in $140 million in fresh capital. Announced on Thursday, the financing is earmarked for expansion into new markets and for deepening relationships with health systems, provider organizations, and payers. For Nashville insiders, the raise is one more sign that the city is still a magnet for high-growth health care companies.
According to a release on PR Newswire, the round was led by NewSpring Healthcare, with participation from K2 HealthVentures, Rubicon Founders, Oak HC/FT, Welsh, Carson, Anderson & Stowe, and Durable Capital Partners. Honest Health also tapped Leerink Partners as its exclusive financial adviser and Ropes & Gray as legal counsel on the transaction.
Backers And Leadership
NewSpring partner Mike Kaplan said the firm sees “substantial opportunity” as health systems shift into risk-based payment models. CEO Rob Bessler, MD, framed the new capital as a way to scale Honest Health’s clinical and operational capabilities. The company said the round will speed up partnerships with health systems, provider organizations, and payers, according to the PR Newswire release that detailed the deal and investor lineup.
Founders, Federal Ties And Scale
Honest Health was founded in 2021 by Adam Boehler, Abe Sutton, and Matt Kim, the company says. Honest Health reports that it supported care for more than 115,000 Medicare and Medicare Advantage members in 2024, according to Honest Health. Sutton now serves as deputy administrator and director of the Center for Medicare and Medicaid Innovation, per CMS, a connection that highlights why investors are paying attention to companies that can actually execute on risk contracts.
Local Scale And What It Could Mean
Honest Health has been on a rapid growth curve. The Nashville Business Journal reported that the company reached roughly $1.6 billion in revenue in just three years, a sign of how quickly it has scaled. The Nashville Post also covered the funding news and noted plans for expanded partnerships. If Honest Health can convert its pilots into enterprise-wide contracts, this round could translate into larger system deals and more hiring in Nashville.
Why Investors Are Watching
The new capital arrives as federal and private payers push broader, longer-term risk models that increase demand for partners able to manage Medicare populations at scale. CMS’s new LEAD model, a 10-year ACO experiment designed to expand participation in accountable care, is one example of that shift, and it expands the potential market for companies that can deliver measurable outcomes, according to CMS. Investors say that firms capable of operationalizing risk-based care are positioned to win more health system contracts as these programs roll out.
