Free Market Health, a pharmacy technology company, has raised $13.5 million in financing, including from Highmark's venture arm.
The funding will support the Pittsburgh-based company with scaling its marketplace platform that coordinates pharmacy referrals and reimbursements for specialty drugs, a move that benefits payers, patients and specialty pharmacies, according to an April 19 press release.
Free Market Health uses an online marketplace where contracted specialty pharmacies can bid on prescription authorizations and filling a member's prescription. Contracted pharmacies can also earn extra value-based reimbursements for certain drugs. The company claims its practices have led to a 36 percent reduction in medication abandonment of payer-authorized referrals.
The $13.5 million investment was led by San Francisco venture capital firm Alta Partners and included Gibsonia, Pa.-based 653 Investment Partners.
"From delays in prior authorization requests to uncertainty on the best fit specialty pharmacy and medication pricing variability, the existing specialty pharmacy ecosystem fails to do what it's meant to do: efficiently deliver lifesaving and life-altering medications into the hands of patients," said Joe Cardosi, founder and CEO of Free Market Health. "Our mission is to ensure the specialty medication referral and reimbursement process never fails the patient, and we're thrilled to have support from innovative and passionate investors like Alta Partners, Highmark Ventures and 653 Investment Partners."