Goodbill announced that it has raised nearly $2 million in a fresh round of funding, as it invests further into its healthcare cost containment offering for self- and level-funded groups.
The new funding, revealed in a Geekwire article this week, brings Goodbill’s total funding-to-date to $5.3 million. The round was anchored by the same investors who participated in the initial December 2021 round, which was led by Founders’ Co-op with investments from Maveron and Liquid 2 Ventures, with several new funds and angel investors participating.
Goodbill is led by co-founders Patrick Haig and Ian Sefferman, who have said the company's mission is to make healthcare transparent, trustworthy, and affordable.
Goodbill is using the funds to continue the expansion of its cost containment offering for plans and members. Cost containment was a natural evolution of the direct-to-consumer hospital negotiation offering Goodbill first launched in 2022, said CEO and co-founder Patrick Haig. After building momentum with consumers, Goodbill began getting inquiries from employers, third-party administrators and brokers who wanted to apply the same tools to save money farther upstream.
Goodbill’s solution for plans leverages A.I., data, technology, and personalized member support to help self-funded employers vet incoming hospital claims for accuracy, and capture discounts and savings before the plan pays the provider.
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Goodbill is generally the first stop in the claims flow. Once a hospital issues a claim to the employer or payer, Goodbill reviews it against the member’s medical record for errors or inflated charges. Roughly one in every two claims contain overcharges, Goodbill estimates. Because Goodbill is digitally integrated with the patient portals at more than 2,500 hospitals across the country, it’s able to pull in data quickly to conduct these claim reviews. This enables Goodbill to review every single claim — not just claims above the average industry threshold of $35,000 — and deliver fast turnaround results before, not after, the plan pays the provider.
Goodbill also checks whether a member is eligible for a 501(r) discount on the claim from their hospital. Six in 10 hospitals in the U.S. are nonprofit and required to offer these discounts to members based on household income. A family of four with an annual household income of $111,000, on average, would qualify for a 501(r) discount from their hospital, based on 2024 federal income guidelines. Goodbill is able to instantly screen whether a member is eligible at any of over 3,500 hospitals in the country; if so, Goodbill starts the application process.
Together, claim reviews and 501(r) discounts can save plans 8% on their annual facility spend, on average, according to Goodbill.
To learn more, read the full story on Geekwire.
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Goodbill was named by TIME as a Best Invention of 2023.
