News Feature | May 25, 2015

UPMC-Backed Evolent Health Files $100 Million IPO

Christine Kern

By Christine Kern, contributing writer

DHS Investment Into Solutions Could Impact Commercial Market

Tech firm joins digital health peers Inovalon and Teladoc in the telehealth investment boom.

Evolent Health, which helps providers adopt value-based payment models, has announced that it is seeking to raise $100 million in an initial public offering (IPO), according to an SEC regulatory filing. The population health IT provider and management consultancy, formed by University of Pittsburgh Medical Center and the Advisory Board Co., wants to help health systems shift from fee-for-service to outcomes-based care business models to change the way they deliver healthcare.

Evolent is hoping to cash in on the current telehealth investment boom, and is joining Inovalon and Teladoc in efforts to raise funds from Wall Street during this enthusiastic investment in new healthcare technologies. Evolent Health was founded in 2011 and recorded $101 million in sales for the fiscal year ending December 31, 2014, according to ; however the company reported a $52.3 million net loss for 2014.

According to its S-1 filing document, Evolent has 10 long-term contractual relationship with four partners accounting for 76 percent of its revenue: Indiana University Health (25 percent); WakeMed Health and Hospitals (21 percent); Piedmont WellStar Health Plan (16 percent); and Premier Health Partners (14 percent.)

In September 2013, the company raised a $100-million venture capital round at an unprecedented early stage with investors including The Advisory Board, UPMC Health Plan, and private equity firm TPG Growth, according to VentureBeat.

In a December 2014 interview with the Washington Business Journal, Evolent's chief executive Frank Williams said, “We'll probably be in 35 markets nationally by next year, so the map nationally is beginning to be filled up. You can see this vision of the national network. We'll be over $100 million in revenues this year [up from $40 million last year] and growing very rapidly so, really, we're building a financial base for the business. And we're seeing such high demand that we'll be looking for creative ways we can continue to build the platform. We ultimately want to be the market leader.”